{"id":9277,"date":"2016-06-26T18:02:45","date_gmt":"2016-06-26T18:02:45","guid":{"rendered":"https:\/\/kohelet.org.il\/article\/recommendations-and-findings-on-labor-productivity-in-israel\/"},"modified":"2016-06-26T18:02:45","modified_gmt":"2016-06-26T18:02:45","slug":"recommendations-and-findings-on-labor-productivity-in-israel","status":"publish","type":"article","link":"https:\/\/www.kohelet.org.il\/en\/article\/recommendations-and-findings-on-labor-productivity-in-israel\/","title":{"rendered":"Recommendations and findings on labor productivity in Israel"},"content":{"rendered":"Read the full memo<\/a>\n\n \n\nIn recent decades, Israeli labor productivity is not closing the gap with more developed countries, and in\nmany respects the gaps are even widening.\n\u2022 A key factor in the widening productivity gap in the past decade are welcome changes in the labor\u00a0market, in particular tremendous growth in the labor participation rate alongside a decline in the\u00a0unemployment rate. By comparison, employment growth in other developed countries has been\nquite modest. We should not fall into the trap of viewing the extraordinary ability of Israeli young\u00a0people from varied backgrounds to find gainful employment in the local job market as a type of\u00a0failure. We emphasize that maintaining the economy\u2019s ability to create jobs is no less important than\u00a0increasing labor productivity.\n\n\u2022 Highly inflexible employment practices harm productivity in the public sector. The collective\u00a0agreements in this sector make the proper allocation of the labor force very difficult. For example, it is\u00a0very complicated to transfer an employee from on position to another, or to implement streamlining\u00a0plans. Israel\u2019s labor laws are such that the strong labor unions in the public sector \u2013 and particularly\u00a0in the government monopolies \u2013 can prevent reforms and arrangements that could increase labor\u00a0productivity, their employment conditions and the quality of life of all Israel\u2019s citizens.\n\n\u2022 It is important to improve the elementary and high school education system, especially in the Arab\u00a0and Haredi (ultra-Orthodox Jewish) sectors. The cholastic achievements in the Arab sector are\u00a0similar to those in Jordan and Tunisia, while in the Haredi sector male students are not taught at\u00a0all skills essential in the modern job market. Research indicates that Israel has a dual job market,\u00a0in which industries with high-end jobs cannot attract workers from low-income sectors. A possible\u00a0reason for this is likely the exceptionally high number of poorly skilled young people with who cannot\u00a0compete in industries that demand higher skills.\n\n\u2022 Israel has significant obstacles to entrepreneurship and establishing businesses. A study by the\u00a0OECD found that the legal hurdles for fledgling businesses in Israel are among the most daunting\u00a0of any OECD country. Other comparative studies have shown that an anti-competitive regime tends\u00a0to hinder the adoption of international improvements that increase labor productivity. There should\u00a0therefore be efforts to reduce regulation and the protection of existing business, and lower the other\u00a0barriers to entrepreneurship.","protected":false},"excerpt":{"rendered":"In recent decades, Israeli labor productivity is not closing the gap with more developed countries, and in\nmany respects the gaps are even widening.","protected":false},"featured_media":9278,"template":"","article-category":[525],"custom-tags":[46,565],"ppma_author":[52],"class_list":["post-9277","article","type-article","status-publish","has-post-thumbnail","hentry","article-category-publications","custom-tags-economy-of-israel","custom-tags-productivity"],"acf":[],"yoast_head":"\nRecommendations and findings on labor productivity in Israel - kohelet<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.kohelet.org.il\/en\/article\/recommendations-and-findings-on-labor-productivity-in-israel\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Recommendations and findings on labor productivity in Israel - 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