Labor Market Reform

IDI's Labor Market 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

    Director

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    Daphna Aviram-Nitzan is the former head of the migration research unit at Aharon Meir Center for Banking and Economic Policy at Bar-Ilan University and the former director of the economic research division at the Manufacturers Association of Israel.

     

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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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    Prof. Eytan Sheshinski

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    Dr. Eitan Regev

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    Dr. Eitan Regev is an economist and a Research Fellow at Israel Democracy Institute. He is regarded as one of the leading experts in research of the Ultra-Orthodox economy in Israel. Dr. Regev's research encompasses a variety of fields, including labor productivity, the Haredi economy, the cost of living, food insecurity, and the Israeli health system. 

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    Rachel Zaken

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    Gabriel Gordon

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.

Israel suffers from a shortage of skilled workers in manufacturing industries and hi-tech and an overflow of the service sector; priorities in the allocation of public resources for the training of human capital must be changed to better fit the needs of the economy.

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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.