Employment Incentives for the Haredi Community are a Mix of ‘Carrots’ and ‘Sticks’

Finance Minister Liberman’s employment incentives for members of the ultra-Orthodox (Haredi) community are a "mix of ‘carrots’ and ‘sticks’ and could encourage members of the Haredi community to join the labor market - however elements of the plan could also expand the existing trend of part-time employment.

Finance Liberman | Flash 90

Dr. Gilad Malach, Director of the Ultra-Orthodox in Israel Program at the Israel Democracy Institute, on recent reports regarding employment incentives proposed by Finance Minister Liberman for members of the ultra-Orthodox (Haredi) community:

"The proposed policies are based on a mix of ‘carrots’ and ‘sticks’ and could encourage members of the Haredi community to seek employment and join the labor market. Lowering the exemption age and providing additional budgets to schools teaching a core curriculum are important parts of an incentive package aimed at increasing Haredi employment. Similarly, demanding that workers fulfill their earning potential as a condition for receiving governmental discounts and subsidies can serve as an additional motivation to join the workforce."

"However," Dr. Malach, noted, "reducing the hours that kollel (seminary) students must report to receive their government stipends may achieve the opposite of its intended goals. Instead of encouraging Haredi men to seek full-time employment, it will expand the phenomenon of yeshiva students looking only for part-time work and even encourage those who are now working in full-time jobs to register themselves as students in kollels."