Israel has the highest poverty rate in the developed world, Haaretz concludes based on a new study by the Organization for Economic Cooperation and Development (OECD).

The newspaper notes that with a poverty rate of 20.9 percent, Israel scores lowest out of 34 economically developed countries. The country also has one of the biggest gaps between its rich and poor in the developed world .

In the new report on income inequality, the OECD writes that data indicate economic crises have lowered incomes and capital in most countries. In addition, the organization concludes that inequality has increased more in the past three years than in the previous 12.

Many countries entered the global economic crisis already facing the highest levels of income inequality since OECD records began. With higher unemployment and lower returns from capital, the crisis not only weighted heavily on incomes from work and capital but also made their distribution more unequal.

Only Chile, Mexico, Turkey and the U.S. precede Israel when it comes to income inequality rates, the study indicates. Nordic and Central European countries have the least income inequality.

The results of the study were released days after Israeli Prime Minister Benjamin Netanyahu sparked criticism for lavish expenditures made with taxpayers' money. The AP reported on Monday that Netanyahu's expenses had risen nearly 80 percent since taking office in 2009. On a recent trip to London, the Israeli leader reportedly spent $127,000 in public funds for a sleeping cabin.

Ire toward the Israelis leader comes as the government is set to push through a series of severe austerity measures. The AP notes that the new national budget increases taxes while cutting family subsidies and medical benefits. The director of Israel's National Insurance Institute told Haaretz that the cuts in benefits are likely to cause more families to fall into poverty.

"The planned cuts in child allowance will increase the number of families living below the poverty line. An additional 30,000-40,000 children will be under the poverty line, which currently stands at NIS4,000 per month ($1,091) for a couple," professo Shlomo Mor-Yosef explained.

Take a look at the ten OECD countries with the largest income inequality in the slideshow below:

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  • 9. Greece

    A woman holds a cardboard reading in Greek 'I' m hungry' on March 17, 2011 in central Athens. (LOUISA GOULIAMAKI/AFP/GettyImages)

  • 8. Spain

    A man looks for food in garbage container on January 15, 2013 in Santa Cruz de Tenerife on the Spanish Canary Island of Tenerife. (DESIREE MARTIN/AFP/Getty Images)

  • 7. U.K.

    On the day that Britain officially enters a recession, a homeless man walks the streets on January 23, 2009 in Liverpool, United Kingdom. (Photo by Christopher Furlong/Getty Images)

  • 6. Portugal

    Hunter Halder walks toward his bicycle loaded with food that he collect in restaurants on October 21, 2011 in Lisbon. Every night, Hunter Halder, a 60 years old american leaving in Portugal, mounts his bike and toured the restaurants where he gets the food he distributes to the poor of Lisbon, hit hard by the severe economic crisis in Portugal. (PATRICIA DE MELO MOREIRA/AFP/Getty Images)

  • 5. Israel

    Thousands of Israelis gather to protest against the cost of living in Israel, in Jerusalem Saturday, Sept. 3, 2011. (AP Photo/Sebastian Scheiner)

  • 4. U.S.

    A man walks down the street collecting cans on October 20, 2011 in Reading, Pennsylvania. (Photo by Spencer Platt/Getty Images)

  • 3. Turkey

    Children play on the garbage heap in Hasankeyf a small poverty stricken town on the banks of the Tigris on April 10, 2010. (BULENT KILIC/AFP/Getty Images)

  • 2. Mexico

    A family inside their house made with carboard at the edge of a ravine in a poor zone of Mexico city , on July 24, 2012. (OMAR TORRES/AFP/GettyImages)

  • 1. Chile

    Photo: In this June 14, 2012 photo, a man leaves his home in a horse drawn cart to begin his work day of recycling trash in an area where families live in extreme poverty in the Puente Alto sector of Santiago, Chile. (AP Photo/Victor Ruiz Caballero)

  • 10. Japan

    A poor Japanese man pushes a cart in downtown Tokyo on March 2, 2010. (YOSHIKAZU TSUNO/AFP/Getty Images)

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