Romain, you are right on the difference between average and median wages. Average wage is going up doe to the top earners, and Israel’s better part of economy, based on hightech, is doing very well last 20-30 years. At the same time, the lower part, consisting of traditional industries, manual work, non-working population are not doing as well. It is a reflection of overall tendencies in the world: technology enables better productivity. A software developer is more productive than a traditional engineer: he creates a program that can be used million of times instead of designing one house. At the same time, a farmer with a high tech tractor still needs to plow the whole field…
There are two ways to change the situation:
1) demand that richer people share their productivity with others. for a small country, like Israel, it will lead to more people leaving to not be over-taxed in other places
2) train more people to do productive work using modern technology so that they can earn accordingly