Reducing socio-economic differences between municipalities in Israel

Gabriel Machlica

No 1645, OECD Economics Department Working Papers from OECD Publishing

Abstract: Despite being one of the smallest countries in the OECD, Israel is marked by significant socio-economic disparities, which have a clear spatial dimension. Ethnic and religious groups with weak socio-economic outcomes are not benefitting from the thriving high-tech sector in the centre of the country. As a result, there is a persistent lack of employment opportunities in the peripheral areas alongside skills shortages in the dynamic centre. Inequalities between municipalities are the highest in the OECD. Moreover, the current pandemic has hit poorer Haredi neighbourhoods particularly hard. The government should reduce barriers that prevent segments of the population from fully participating in the economic process and give everyone a similar chance to succeed, regardless of where he or she was born. This will require equal access to high-quality education, affordable housing, reasonable public transportation and improved urban planning in every municipality to reduce spatial divides and segregation of disadvantaged households. Local authorities can play a significant role, since good municipal government and effective policies to achieve national priorities are the best means to improve the outcomes of residents of poor areas.

Keywords: education; fiscal decentralisation; housing; infrastructure; municipalities; regional inequality (search for similar items in EconPapers)
JEL-codes: H52 H53 H54 H71 H72 O18 R11 R52 R58 (search for similar items in EconPapers)
Date: 2020-12-22
New Economics Papers: this item is included in nep-cwa, nep-geo, nep-pbe and nep-ure
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaaa:1645-en

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