THE EFFECT OF THE “TAL LAW” ON THE SUPPLY OF LABOR AMONG ULTRA-ORTHODOX MEN

Zvika Deutsch ()
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Zvika Deutsch: Tel Aviv University

Israel Economic Review, 2018, vol. 15, issue 1, 35-71

Abstract: The Tal Law, which went into effect in 2003, formalized the deferral of military service for yeshiva students who study Torah fulltime. The law introduced a number of new rules, some of which were aimed at encouraging the employment of ultra-Orthodox men by making it more worthwhile for them to work. This study, for the first time, looks at the effect of the Tal Law on the supply of labor. This is accomplished by estimating a difference-in-differences equation that compares the rate of employment and the labor force participation rate prior to the implementation of the law and subsequent to it, between ultra-Orthodox men that were affected by the Tal Law and ultra-Orthodox men who were virtually unaffected by it. The findings show that the Tal Law had a significant and positive effect on the supply of labor among young ultra-Orthodox men, and thus reduced their age of entry in the labor force

Date: 2018
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