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Download Full Publication STATE OF THE NATION REPORT Society, Economy and Policy in Israel 2009 The Herbert M. Singer Annual Report Series The Herbert M. Singer Annual Report Series STATEThe Herbert OF THEM. SingerNATION Annual Report REPORT Series Society, Economy and Policy STATE OF THE NATION REPORT in Israel Society, Economy and Policy STATE OF THE2009NATION REPORT in Israel Society, Economy and Policy Dan Ben-David,in2009 Israel Editor Dan Ben-David,2009 Editor Dan Ben-David, Editor ������ ���� ����� Taub Center for Social ������Policy Studies in Israel ���� ����� Jerusalem, September 2010 Taub Center for Social ������Policy Studies in Israel ���� ����� Jerusalem, September 2010 Taub Center for Social Policy Studies in Israel Jerusalem, September 2010 Taub Center for Social Policy Studies in Israel Established in 1982 under the leadership and vision of Herbert M. Singer, Henry Taub, and the American Jewish Joint Distribution Committee (JDC), the Center is funded by a permanent endowment created by the Henry and Marilyn Taub Foundation, the Herbert M. and Nell Singer Foundation, Jane and John Colman, the Kolker-Saxon-Hallock Family Foundation, the Milton A. and Roslyn Z. Wolf Family Foundation, and the JDC. The Taub Center is an independent, nonpartisan, socioeconomic research institute based in Jerusalem. The Center conducts quality, impartial research on socioeconomic conditions in Israel, and develops innovative, equitable and practical options for macro public policies that advance the well-being of Israelis. The Center strives to influence public policy through direct communications with policy makers and by enriching the public debate that accompanies the decision making process. This volume, like all Center publications, represents the views of its authors only, and they alone are responsible for its contents. Nothing stated in this book creates an obligation on the part of the Center, its Board of Directors, its employees, other affiliated persons, or those who support its activities. Editing: Dalit Nachshon-Sharon Translation: Joab Eichenberg-Eilon English editing: Laura Brass Layout and editing assistant: Ruti Lerner Center address: 15 Ha’ari Street, Jerusalem, Israel Tel: 972 2 567 1818 Fax: 972 2 567 1919 Email: [email protected] Website: www.taubcenter.org.il Printed at Maor-Valach Press, Jerusalem Board of Directors Chair: Caryn Wolf Wechsler Honorary Chairman: Henry Taub Helen Abeles, Alan Batkin, Dan Ben-David, Stuart Brown, Geoff Colvin, Heinz Eppler, Ralph I. Goldman, Ron Grossman, Ellen M. Heller, Jonathan Kolker, Dov Lautman, Stephen Lieberman, Greg Rosshandler, Steven Schwager, Irving Smokler, Michael Steinhardt, Joyce Zeff. Honorary Board Members: Israel Katz International Advisory Council Henry Aaron (Brookings Institution), Gary S. Becker (University of Chicago), Mario Blejer (Argentina), Aaron Ciechanover (Technion Institute of Technology), Stuart Eizenstat (Washington DC), Han Entzinger (Erasmus University), Adam Gamoran (University of Wisconsin), Peter Heller (John Hopkins University), Elhanan Helpman (Harvard University), Daniel Kahneman (Princeton University), Lawrence Klein (University of Pennsylvania), Robert Litan (Brookings Institution), Janet Rothenberg-Pack (Wharton School of Business), Burton A. Weisbrod (Northwestern University). Taub Center Staff Executive Director: Dan Ben-David Kasanesh Ambao (Housekeeping), Sagit Azary (Researcher), Nachum Blass (Senior Researcher), Haim Bleikh (Researcher), Laura Brass (External Relations Coordinator), Dov Chernichovsky (Health Policy Program Chair), Yulia Cogan (Researcher), Aharon Cohen (Maintenance), Hedva Elmackias (Administrative Assistant), Yuval Erez (Administrative Director), Ayal Kimhi (Deputy Director and Labor Policy Program Chair), Ruti Lerner (Publications), Dalit Nachshon-Sharon (Publications Coordinator), Yossi Shavit (Education Policy Program Chair), Kyrill Shraberman (Researcher), Haya Stier (Social Welfare Policy Program Chair), Eran Yashiv (Economics Policy Program Chair). Past Directors: Israel Katz, Yaakov Kop. Taub Center Policy Programs Economics Policy Program Eran Yashiv, Chair, Shmuel Abramzon, Yarom Ariav, Adi Brender, David Brodet, Gil Bufman, Vered Dar, Uri Gabbay, Jack Habib, David Klein, Dan Peled, Avia Spivak, Michel Strawczynski, Natan Sussman, Shlomo Yitzhaki, Ben Zion Zilberfarb. Education Policy Program Yossi Shavit, Chair, Khaled Abu-Asbeh, Chaim Adler, Shlomit Amichai, Chana Ayalon, Shlomo Beck, Gila Ben Har, Nachum Blass, Ofer Brandes, Nora Cohen, Avital Darmon, Yigal Douchan, Yariv Feniger, Isaac Friedman, Yossi Gidanian, Josh Glazer, Meir Kraus, David Maagan, Zamira Mevorach, David Nevo, Dimitri Romanov, Analia Schlosser, Rita Sever, Yehudit Shalvi, Kemal Shufniyah, Sidney Strauss, Rami Sulimani, Zvi Yanai, Michael Yodovitsky, Noam Zussman. Health Policy Program Dov Chernichovsky, Chair, Uri Aviram, Ran Balicer, Shlomo Barnoon, Yitzhak Berlowitz, Nakhle Beshara, Gabi Bin Nun, Bishara Bisharat, Shay Brill, David Chinitz, Chaim Doron, Asher Elhayany, Leon Epstein, Zvi Frankel, Ronni Gamzu, Iris Ginzburg, Kobi Glazer, Eitan Hai-Am, Jonathan Halevy, Eran Halperin, Tuvia Horev, Avi Israeli, Orit Jacobson, Nir Kaidar, Rachel Kaye, Jacob Menczel, Shlomo Mor-Yosef, Guy Navon, Meir Oren, Yair Shapiro, Michael Sherf, Arie Shirom, Amir Shmueli, Yohanan Shtessman. Labor Policy Program Ayal Kimhi, Chair, Leif Danziger, Yuval Elbashan, Karnit Flug, Johnny Gal, Amiram Gonen, Daniel Gottleib, Eric Gould, Shelly Levi, Noah Levin-Epstein, Hagay Levine, Yaakov Loupo, Miki Malul, Guy Mundlak, Dalia Narkiss, Guy Navon, Tali Regev, Dimitri Romanov, Moshe Semyonov, Sigal Shelach, Yossi Tamir, Irit Tamir. Social Welfare Policy Program Haya Stier, Chair, Leah Ahdut, Mimi Ajzenstadt, Michal Almog-Bar, Dorit Altschuler, Uri Aviram, Shirley Avrami, Roni Barzuri, Yigal Ben-Shalom, Israel Doron, Johnny Gal, Boni Goldberg, Yosef Katan, Chana Katz, Lihi Lahat, Ibrahim Mahajne, Miki Malul, Menachem Monnickendam, Baruch Ovadiah, Amir Paz-Fuchs, Yossi Tamir, Idit Weiss-Gal, Uri Yanay. Addendum In the period that elapsed between publication of the Report’s Hebrew version and this English version, the findings reported here have had an unprecedented impact in Israel. The State of the Nation Report has generated close to three hundred articles, reports and editorials to date in the printed and electronic media. These include multi-article series in two different newspapers highlighting various aspects of the Report. The findings have been brought before the country’s leading policy makers in the cabinet, the Knesset and in the civil service. The influence of the findings in shaping the public debate is visible in their prominent position in end-of-year media summaries (for the 2009- 2010 Jewish calendar year) culminating in awards and honors from some of Israel’s leading media outlets. STATE OF THE NATION REPORT Society, Economy and Policy in Israel 2009 Table of Contents Foreword 11 A Macro Perspective of Israel’s Society and Economy Dan Ben-David 17 Public Expenditures – A Look at Israel’s National Priorities Dan Ben-David 49 Israel’s Education System – An International Perspective and Recommendations for Reform Dan Ben-David 115 Israel’s Education System – A Domestic Perspective Nachum Blass 157 Israel’s Labor Market – Today, in the Past and in Comparison with the West Dan Ben-David 213 The Social Security System John Gal 277 Personal Social Services John Gal 311 The Healthcare System Dov Chernichovsky 335 The 2009 Social Survey Nachum Blass, Dalit Nachshon-Sharon 381 Foreword he Taub Center’s State of the Nation Report focuses on the link T between society, economy and policy in Israel. All too often, public discourse and policy making are driven by conventional wisdom and gut feelings rather than by facts. This Report’s goal is to provide an extensive factual, professional and impartial foundation that will serve the public and its leaders in understanding where we were, where we are, where the trends are leading us, their implications, and what kinds of policies can lead to substantive changes – even if our current trajectories may seem etched in stone and inevitable. The core issues of past Taub Center annual reports continue to be examined here while new points of emphasis have been added to create the State of the Nation Report – Society, Economy and Policy 2009, this series’ new title. The Report presents a comprehensive picture featuring long term historical perspectives and extensive international comparisons. The more benchmarks there are from the past and from other countries, the greater the ability to understand the implications and consequences of the situation in Israel. The State of the Nation Report opens with a macro analysis chapter, painting the “big picture” of the anomaly that is Israel: creativity and innovation pushing the envelope of human knowledge alongside rates of poverty and income inequality that are among the highest in the West; academic excellence alongside a primary and secondary education system with achievements at the bottom of the Western world; unemployment rates similar to the Western average alongside non-employment rates unparalleled in other developed countries. While the industrialized world is steadily aging, Israel’s high birth rates give hope for the future – provided its children receive an educational toolbox that will adequately prepare them for the 21st century. 11 12 State of the Nation Report 2009 What are Israel’s national priorities? The answer lies in its government’s budget. The Report’s budget chapter
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