1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Addressing labour market challenges for sustainable and inclusive growth in Israel

High employment growth has sustained Israel’s high GDP growth in recent decades, but demographic change and labour market duality put future growth at risk. Policy action is required to stimulate employment and raise labour productivity, especially among population groups with weaker labour market outcomes. A particular concern is closing employment gaps of Haredim and Arab Israelis and ensuring gender equality in the workplace, which would simultaneously improve opportunities for all Israelis and the aggregate labour productivity of the economy. This will require setting appropriate work incentives and providing better support for working parents; improving skills at all stages of the learning cycle; as well as increasing mobility and improving reallocation towards high-productivity jobs and firms, in particular in the high-tech sector.

English

Keywords: reallocation, labour market participation, wage gaps, demographic change, Israel
JEL: J21: Labor and Demographic Economics / Demand and Supply of Labor / Labor Force and Employment, Size, and Structure; J42: Labor and Demographic Economics / Particular Labor Markets / Monopsony; Segmented Labor Markets; J18: Labor and Demographic Economics / Demographic Economics / Demographic Economics: Public Policy; J15: Labor and Demographic Economics / Demographic Economics / Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination; J31: Labor and Demographic Economics / Wages, Compensation, and Labor Costs / Wage Level and Structure; Wage Differentials; J16: Labor and Demographic Economics / Demographic Economics / Economics of Gender; Non-labor Discrimination; R11: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics / Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; E24: Macroeconomics and Monetary Economics / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy / Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
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