Economic Reform

IDI's Economic Reform Program seeks to reform labor relations in Israel. The principal aim of the project is to address the worrying trend of dualization in Israel's labor market, which is exacerbating social tensions and driving up the cost of living. On the one hand, large segments in the Israeli workforce are working under temporary contracts that offer minimal job security, weak social protections and dwindling economic security. Entrenched segments of the workforce hold tenured positions, exhibit low productivity and abuse the tremendous political power at their disposal to prevent necessary reforms.

The goal of the program is to develop actionable policy proposals that will address this major economic and social challenge. In so doing, the program aspires to boost productivity in Israel's public sector, help lower the cost of living in Israel and strengthen public trust in government.

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    Daphna Aviram-Nitzan

    Head

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    Daphna Aviram-Nitzan has held the position of Director of the Center for Governance and the Economy since 2016 along with serving as the Director of the annual Eli Hurvitz Conference for Economy and Society.

    Between 2002-2016, Aviram-Nitzan was the Director of the Economic Research division and the Chief Economist at the Manufacturers Association of Israel (MAI) and the economic advisor of the President of the business sector. Before that (1994 – 2002) Daphna served as an economist in several positions in the MAI's research and strategy department. She is the former chairman of the board of directors of Clal Finance-Mutual Funds and currently serves as an External Director of companies in the Israeli capital market.

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    Prof. Yotam Margalit

    Senior Fellow

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    Professor Margalit headed a large, experimental cross-national study of the investment decisions of multinational firms, a project that he developed and carried out in collaboration with the World Bank and the United Nations Industrial Development Organization.

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    Gabriel Gordon

    Researcher

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    gabrielg@idi.org.il

    He holds a Master's degree in Economics and Environmental studies.

    His research focuses on demographics and trends within the Israeli labor force.

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    Dr. Itamar Yakir

    Researcher

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    Itamar is a researcher in the Economic Reform Program at IDI and holds a PhD from the School of Public Policy, the Hebrew University of Jerusalem.

    He studies social policy, labor markets and political economy.

    His Dissertation deals with the response of minorities to reforms made in labor market programs.

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    Yarden Kedar

    Research Coordinator at the Center; Research Assistant at the Program

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    yardenk@idi.org.il

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    Zak Hirsch

    Research Assistant

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    zakh@idi.org.il

    Zak researches intergenerational mobility, changes in workers' skills and tasks, and environmental employment policies.

    He graduated with a bachelor's degree in philosophy, economics, and political science from Tel Aviv University. He is currently a Master's student in economics in the joint .research track of the Hebrew University and Tel Aviv University

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    Roe Kenneth Portal

    Research Assistant

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    E-mail: roek@idi.org.il

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    Nadav Porat Hirsh

    Research Assistant

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    Holds a joint degree in law and economics and is currently pursuing a Master's degree in economics at the Hebrew University.

    primary research interests encompass labor market dynamics, the cost of living, and the impact of climate-change on labor market.

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    Yechiel Noam

    Research Assistant

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    yechiel@idi.org.il

Study on the integration and mobility of individuals from disadvantaged economic backgrounds in the high-tech industry

Over the past decade average real wage of Israeli workers increased by 25% - nevertheless their purchasing power is relatively lower than the OECD average

Former Governor of the Bank of Israel Prof. Karnit Flug, explains what lies behind the recent wave of the rise in prices; what is the main tool for dealing with inflation, and how this relates to wage agreements in the public-sector. She makes is clear that we are not back where we were in the 1980s, but, we must deal with the situation without delay.

Behind the record number of job openings, in an age of full employment and an economy with rapid growth, what steps can the government take to promote the inclusion of workers currently outside the job market and to help businesses?

Prof. Karnit Flug, Vice President of Research and William Davidson Senior Fellow for Economic Policy at the Israel Democracy Institute, as well as the former Governor of the Bank of Israel on Israel’s economy after two years of the global pandemic and political crisis in Israel in conversation with Talia Dekel from the Jerusalem Press Club.

A new study utilizes extensive data to offer a new understanding of the changes the labor market underwent during two years of Covid-19

New IDI survey finds that 250,000 Israelis, who are not working, and not receiving unemployment allowances, might soon be forced to rely on supplemental income support.

 

 

 

The "great resignation" that has swept the US and UK in recent months is one of the symbols of the recovery from the pandemic. Is this trend taking place in Israel too?

Addressing the shortage of hi-tech workers isn't enough. Israel must focus on vocational training & improving productivity in all industries to continue economic growth - economist Daphna Aviram Nitzan explains 

The survey indicates that economic inequality between the Arab and Jewish populations in Israel has increased as a result of the COVID-19 crisis

Insights from 2020 Israel Democracy Institute Surveys and from the World Economic Forum’s Future of Jobs Report 2020

Numbers working from home skyrocketed with the outbreak of the pandemic mainly among white-collar workers, workers with an academic degree, and high-salary workers

A special IDI survey on the economic impact of the COVID crisis finds that worker's financial liquidity has declined sharply with 31% of respondents reporting that they had no liquid funds to support themselves.

One of the very few pieces of good news resulting from the corona crisis is the increase in people working from home (WFH). Unfortunately, workers from lower socioeconomic groups are not benefiting from this change.

An IDI survey examines public opinion on Israelis preferred areas of study and participation when undergoing vocational training during the economic crisis resulting from the coronavirus.

A growing number of countries around the world have realized that vocational training and subsidies for the training period can increase the demand for workers. Israel's government should follow this lead, while at the same time accelerating the pace of development of infrastructure projects, to increase the demand for skilled workers.

The current crisis threatens the heart of the labor market with 400,000 workers between the ages of 35-54 designated as "temporarily absent from work" due to the coronavirus

Reducing the regulatory burden is a key objective for many government ministries -but how can this be achieved while maintaining honest and ethical behaviour

Reframing the eco-system to prepare for Israel’s job market of the future.

In an interview Prof. Yuval Feldman, discusses his new book "The Law of Good People" and sheds light on the connection between good people and corruption.

Behavioral ethics, a growing area within psychology and management literature, demonstrates that an individual’s unethical behavior is demonstrated through self-deception.

The number of vacation days in Israel is among the lowest in the world. Research by Prof. Yotam Margalit presents a new model which will ensure a minimum of 18 vacation days for each worker.

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In recent years we have seen one Prime Minister, several ministers and numerous mayors charged and convicted on corruption. But most people enter politics for idealistic reasons and with good intentions. So what went wrong? 

Our Democracy Index shows that while Israel’s citizens love their country and are optimistic about its future, they feel a lack of confidence about their personal futures.

"In order to change this trend, we must increase the use of technological tools and behavioral economics."

For Israel's economy to grow, significant investment in building a strong and effective infrastructure for occupational training and reemployment is critical.