Subsidy eligibility is determined primarily according to household income, which is significantly lower among Arabs and the Haredim

The level of subsidy eligibility is determined primarily on the basis of household income per capita. An examination of average income per capita among households with young children (as calculated in order to determine eligibility for subsidies (Labor Division, 2019)) indicates that average household income per capita in Arab society, and even more so that of Haredi households, is significantly lower than among non-Haredi Jewish households. The gap between the Haredim and the Arabs is largely the result of the fact that Haredi families have more children on average. These gaps explain at least part of the variation observed in subsidies.

Average per capita income in households with children from birth to age 4, by population sector, 2018

Note: Per capita income is calculated according to the accepted method for determining the level of subsidy eligibility, namely as the total labor income of the head of the household and their spouse divided by the number of household members upt to the age of 18 and another two individuals.

Source: Madhala et al., Taub Center | Data: CBS