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The 2006-2007 poverty report released by the National Insurance insitute this week showed glaring level of poverty permeates Israeli society, even as the economy has taken positive steps forward in the past year.

According to the report, there are 1,674,800 people in Israel living in poverty, including 805,000 children, or one in every three children in Israel.

The report also revealed another harsh reality: More and more Israelis are working, and staying poor regardless.

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