Addressing labour market challenges for sustainable and inclusive growth in Israel

Michael Koelle

No 1787, OECD Economics Department Working Papers from OECD Publishing

Abstract: 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.

Keywords: demographic change; Israel; labour market participation; reallocation; wage gaps (search for similar items in EconPapers)
JEL-codes: E24 J15 J16 J18 J21 J31 J42 R11 (search for similar items in EconPapers)
Date: 2023-12-21
New Economics Papers: this item is included in nep-ara
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Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaaa:1787-en

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