Labor Market Participation Dr. Michael Sarel Director of Kohelet Economic Forum Free Market Roadshow– May 18, 2015.

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Presentation transcript:

Labor Market Participation Dr. Michael Sarel Director of Kohelet Economic Forum Free Market Roadshow– May 18, 2015

The labor market improved significantly in recent years Source: Kohelet Economic Forum processing of CBS Labor Force Surveys

The Israeli labor market improved, particularly compared to other developed countries * OECD: simple average Source: OECD Israel US OECD

Women, Arabs and ultra-Orthodox Jews were prominent among the new workers Source: Kohelet Economic Forum processing of CBS Income Surveys

Generosity of Welfare Payments to Working-Age Population Was Reduced Source: Bank of Israel

Inequality Is Falling An expanding labor force has returned inequality to early-1990s levels. Source: Gini Index of income inequality: chained National Insurance Institute data by Kohelet Economic Forum; Gini Index of consumption expenditure inequality: Kohelet Economic Forum processing of CBS data

Israelis Are Better Off Both nominal and real income grew rapidly in recent years among all types of households. * The dashed line between 2011 to 2012 reflects changes in survey methodology during this period. Source: CBS

Employment rates for ultra-Orthodox men and Arab women are still low, but rose since 2010 *Religious affiliation self-reported in Social Survey Source: CBS, Social Survey