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Welfare-to-work measures are a central theme of Israel’s labour and social policies to tackle relative poverty, which is concentrated among the Arab-Israeli and Ultra-orthodox (Haredi) communities. Policies include pilot programmes involving private-sector job placement (the “Wisconsin” programme) and an earned-income tax credit. Also, there is increased policy attention to help parents to combine work and family through improvements to daycare and early education. Microeconomic simulations of taxes and benefits suggest room for augmenting these policies with adjustments to benefits and tax expenditures. In the labour market, hiring and firing regulations are light, while the minimum-wage is relatively high in comparison with OECD countries, but it is not strongly enforced. Poverty among pensioners is set to fall in the future with the recent introduction of mandatory second-pillar pension saving. But this reform has also raised questions about the structure of tax breaks on pensions. This Working Paper relates to the 2010 OECD Economic Survey of Israel (www.oecd.org/eco/surveys/israel)

Economics --- Israel

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Israel’s education system is complicated by multiple streams at the primary and secondary levels and by military conscription. Population growth and economic expansion have brought a massive increase in demand for all levels of education. Educational attainment statistics are impressive, but results show high school students have poor basic skills. Reform efforts to tackle this are underway, including increased teachers’ pay in combination with more contact hours and increasing the length of compulsory education. As in other socio-economic spheres, there are significant gaps between Arab-Israelis and the rest of the population. Also, the Ultra-orthodox community’s independent education system presents specific concerns and challenges. In tertiary education, progress has been hindered by the collapse of a reform package that envisaged increased state funding combined with increased student tuition fees, expansion of government-backed student loans and a range of other structural reforms. This Working Paper relates to the 2010 OECD Economic Survey of Israel (www.oecd.org/eco/surveys/israel)

Economics --- Israel