Economy and Society

The recently proposed bill runs counter to accepted budgeting principles and undermines the autonomy of local governance. 

 A survey of daycare subsidies in Israel and recommendations for improved criteria that would encourage participation in the labor market among the ultra-Orthodox. 

It is increasingly clear that Israel’s future depends on the forging of two coalitions. One is a multinational alliance determined to turn the Palestinian issue from a driver of conflict into an engine of peace. The other, is an internal Israeli coalition ready to pursue a series of bold social, economic, and political reforms.

This study describes the employment trends among men registered in ultra-Orthodox yeshivas between the ages of 18-25. The findings are based on a reported work, or "legal work," so it is very likely that this is an underestimation of reality. 

Technological advancements, rapid globalization, and structural changes in the Israeli economy over the past few decades have led to significant shifts in the demand for workers and in the tasks required of them, as well as in the characteristics of their skills and qualifications. This study offers insights on these questions using a variety of data sources and by employing two distinct empirical approaches.

In May 2023, the Knesset approved a two-year state budget for 2023–2024. However, following the outbreak of the war in Gaza and the accompanying conflict in the north, the budget's composition, safety cushions, and especially the priorities it reflects are no longer suited to Israel’s economic and geopolitical realities.

This study was designed to assess the level of satisfaction among students in higher yeshivot (ages 17 and above), their personal and social challenges, and their attitudes toward possible alternatives to yeshiva studies, such as vocational training and employment.

Dr. Rivka Neriya-Ben Shahar proposes a model that resembles the secular educational system of colleges and universities to identify the most gifted torah scholars, who would receive a generous stipend. Others must rethink their role as part of Israeli society.

Israeli reserve soldiers are making unimaginable sacrifices to protect their country. To rise to the challenge of meeting the IDF's expanded personnel needs, Israel's policy solutions must be as diverse as are the reservists serving this nation. A "one-size-fits-all" compensation approach will not cut it. 

Implementing IDI's Israel 2050 program for emissions reduction is not only an urgent necessity, but also highly beneficial in economic terms.

The coronavirus has made working from home much more prevalent, and has many advantages, including improving efficiency and providing workers with more flexibility. But how do we ensure that it does not increase wage disparities and provide even more advantages to those who are already the higher earners? IDI experts weigh in with recommendations to ensure that all sides benefit

Daphna Aviram Nitzan presents an analysis of unemployment in Israel in the wake of the coronavirus pandemic.

Prof. Karnit Flug's press briefing today focued on the Coronavirus’ effect on the Israeli economy and policies that could mitigate the damage inflicted by the pandemic.

What will be the economic ramifications of the coronavirus outbreak on the Israeli economy? Prof. Karnit Flug explains.

The Israel Democracy Institute Names Former Bank of Israel Governor Karnit Flug William Davidson Fellow - new partnership will focus on ensuring Israel’s continued economic vitality.

Prof. Karnit Flug, former Governor of the Bank of Israel and currently Vice President for Research at the Israel Democracy Institute, analyzes the strengths and weaknesses of the Israeli economy.

Developing human capital in Israel is the key to narrowing the labor productivity gap as a key to reducing income disparities

Eli Hurvitz Conference on Economy and Society – First Day, Second Session

Prof. Karnit Flug, Vice President of IDI and Former Governor of the Bank of Israel spoke at the 2019 Eli Hurvitz Conference on Economy and Society: “With no government in place, the ability to make economy-related decisions is impaired. In the current situation, what is done depends entirely on what the Knesset Finance Committee is prepared to do."

Benny Gantz, Chair of the Blue and White party and former IDF Chief of Staff spoke at the 2019 Eli Hurvitz Conference: "Government ministers bicker daily with the professional echelon - a situation that harms Israelis"

Yohanan Plesner, President of the Israel Democracy Institute and Prof. Eugene Kandel, CEO Start-Up Nation Central, open the two day conference, welcoming senior executives from the public and private sectors. 

Profit remains the ultimate objective, but the focus should be on profit for all those with a stake in a company, and not just its shareholders

In response to the Ease of Doing Business 2020 index that was published this morning, Daphna Aviram-Nitzan, director of the Center for Governance and Economics at the Israel Democracy Institute, who leads the regulation reduction project at the Institute, commented on Israel moving up 14 slots to the 35th place after 5 points improvement last year.

Two and a half weeks ahead of the elections, a special IDI survey reveals that the Israeli public gives government economic policies a failing grade and supports increasing the budgets allocated to health, education, welfare, and public transportation services

How do young ultra-Orthodox couples cope with the housing crisis? The most recent figures on home-buying point to a change of the trend in the ultra-Orthodox internal migration. This change poses a challenge, but also an opportunity. How should the state respond?

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

Even though military service seems to be one of the most blatant threats to the ultra-Orthodox lifestyle, it has become a rather attractive channel for broad segments of the community.

Israel improved by five spots over last year in the index of 190 countries. In first place is New Zealand, followed by Singapore, Denmark, Hong Kong, and South Korea. The Ease of Doing Business Index is an international indicator of how easy it is to do business in various countries.

Guaranteeing an independent Supreme Court. Integrating the Ultra-Orthodox into the IDF. Boosting participation of Arab women in the workforce. Improving the ease of doing business in Israel. These are some of the challenges facing IDI’s new cadre of program and center directors.

A recent law stripped local authorities of the power to decide on allowing commercial activity on Shabbat and handed it over to the Minister of the Interior, a development which was met with public uproar. Would it not be better to leave these powers in the hands of the municipalities, which act according to the profile of their resident population? Dr. Shuki Friedman makes the case for leaving these decisions in the hands of the local authority.

On the occasion of this year’s Eli Hurvitz Conference on Economy and Society (June 19-20) the Israel Democracy Institute published a special survey to assess public opinion on Israel’s economic future.

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.

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.

Dr. Peter Jarrett, the head of the Country Studies Division at the OECD, says the government must do more to integrate all Israelis into the economy if it is to continue to prosper and grow. "Boasting that Arabs and Ultra-Orthodox Aside, Israel's Situation is Excellent - is Simply shortsighted and Foolish."

The Minister of Finance has invested tremendous resources in meeting the needs of the Israeli middle class. However, even with these efforts, the minister has failed to address the ultra-Orthodox’s needs — a mistake that has contributed to an acute housing crisis for this sector of Israeli society.

Arab women - around 10% of the total population of Israel - barely participate in the workforce, far below the employment rate of Arab or even ultra-Orthodox men. Why?

For the first time since 2013- a decline in the number of ultra-Orthodox men in the workforce

For the ultra-Orthodox sector and for us as a society, justice is not charity.

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.

Survey to serve as backdrop for discussion at Eli Hurvitz Conference on Economy and Society – June 19 and 20

In a dynamic labor market, challenged by technological disruption and increasing longevity, flexibility is key.

srael's GDP is 40 percent lower than that of the U.S. and its level of productivity is 33% less than most OECD countries, according to a presentation by Dr. Karnit Flug, governor of the Bank of Israel.

As the Israel Democracy Institute's annual Eli Hurvitz Conference on Economy and Society kicks off today in Jerusalem, IDI's Guttman Center for Public Opinion and Policy Research sheds new light on Israeli socioeconomic discourse.

Israel Democracy Institute's leading economic conference will focus on integrating innovation into the government, actuarial crisis,
and role of business press, among other topics

Following the publication of the Poverty Report, Dr. Sami Miaari points out the large percentage of Arab Israelis that live in poverty. He says the current situation requires a new strategy and economic investment on several levels simultaneously. This article first appeared on Times of Israel.

Dr. Benny Porat discusses the precept of debt cancellation during the sabbatical year (Shemita) and proposes ways in which to update this practice to suit the economics of contemporary Israel and create a model society. 

An exploration of the existential, social, and economic dimensions of the Shmita year, that calls for bringing together social, moral, cultural, religious and national forces to implement the idea of Shmita in non-agricultural and national contexts in Israel.

To facilitate the entry of haredim into academia and the workforce, the state and private industry have invested hundreds of millions of shekels in recent years to create ultra-Orthodox frameworks to support individuals who are looking for academic education and employment while also remaining loyal to their cultural mores. As a result, nearly 80 percent of ultra-Orthodox women are now employed, on par with secular Jewish Israeli women.

Ronit Levine-Schnur analyzes the Bill to Regulate Bedouin Settlement in the Negev 5773–2013, warns that it seems to be motivated by an exaggerated fear of a Bedouin takeover of the Negev, and offers an alternative approach. 

Will the High Court of Justice’s refusal to extend the Tal Law indeed reduce the inequality of burden sharing in Israeli society? IDI Senior Fellow Prof. Momi Dahan does not think so, and argues that ultra-Orthodox Jews in Israel should be exempted from the army and allowed to work, so as to assume their fair share of the tax burden.

In an op-ed, originally published on the Ynet website, IDI Senior Fellow Dr. Momi Dahan reflects on the wave of social protest of the summer of 2011 and stresses that the response to the protest must be a new social-economic agenda.

In this article, originally published in Haaretz on April 1, 2010, IDI Senior Researcher Prof. Avraham Ben-Bassat warns that Israel's policy of reducing taxes should be frozen since it may precipitate an economic crisis, and advocates giving preference to increasing public spending while preserving the economy's stability.

Despite last summer's war in Lebanon, Hamas's rise to leadership, Hizbullah rockets being aimed at Israeli cities, and international boycotts, Israeli economy is thriving, the national debt and unemployment have significantly dropped, and investors continue to look to Israel as fertile ground for investment.

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

With the featured participation of: Bank of Israel Governor, Education Minister, Economy Minister, Director-General of the Finance Ministry, Director-General of the Prime Minister Office, Chairman of the Histadrut Labor Federation, Director-General of Bank Leumi, Director General of Microsoft Israel and other VIPs

Top Israeli economist, Professor Eytan Sheshinski, has joined IDI as a senior researcher in the Center for Governance and the Economy, under the leadership of Dafna Aviram-Nitzan.