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State of the Nation Report TAUB CENTER FOR SOCIAL POLICY STUDIES IN ISRAEL S REPORT OF THE NATION STATE THE TAUB CENTER WAS ESTABLISHED IN UNDER THE LEADERSHIP AND VISION OF HERBERT M. SINGER, HENRY TAUB, AND OCIETY THE HERBERT M. SINGER THE AMERICAN JEWISH JOINT DISTRIBUTION COMMITTEE. THE CENTER IS FUNDED BY A PERMANENT ENDOWMENT CREATED BY THE ANNUAL REPORT SERIES 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 , E MERICAN EWISH OINT ISTRIBUTION OMMITTEE A J J D C . CONOMY AND P OLICY IN I SRAEL 2018 STATE OF THE NATION REPORT SOCIETY, ECONOMY AND POLICY IN ISRAEL 2018 TAUB CENTER EDITOR: AVI WEISS The Herbert M. Singer Annual Report Series State of the Nation Report Society, Economy and Policy in Israel 2018 Avi Weiss, Editor Taub Center for Social Policy Studies in Israel Jerusalem, December 2018 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 high-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 and layout: Laura Schreiber and Tamar Friedman Wilson Translation: Shoshana London-Sappir, Julie Rosenzweig/Sagir International Translations Ltd. Copyright © 2018 Taub Center for Social Policy Studies in Israel All rights reserved 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 Printiv, Jerusalem Board of Directors Chair: Helen Abeles Jim Angell (Vice Chair, Governance and Administration), Miri Eisin (Vice Chair, Planning and Resource Development), Jim Koshland (Vice Chair, Budget and Finance), Penny Blumenstein, Stuart Brown, Dennis W. Carlton, John Davison, Martha Freedman, Alan H. Gill, Ellen M. Heller, Stephen Lieberman, Motti Peer, Stanley Rabin, Michael S. Saxon, David M. Schizer, Caryn Wolf Wechsler General Assembly Chair: Michael S. Saxon Helen Abeles, Penny Blumenstein, Zvi Feine, Amir Halevy, Ellen M. Heller, Stephen Lieberman, Stanley Rabin, David M. Schizer, Steven Taub, Caryn Wolf Wechsler International Advisory Council Henry Aaron (Brookings Institution), David Autor (MIT), Mario Blejer (Banco Hipotecario), Aaron Ciechanover (Technion), Stuart Eizenstat (Covington), Han Entzinger (Erasmus University), Adam Gamoran (William T. Grant Foundation), Edward Glaeser (Harvard University), Eric Hanushek (Stanford University), James Heckman (University of Chicago), Peter S. Heller (Johns Hopkins University), Daniel Kahneman (Princeton University), Robert E. Litan (Korein Tillery), Janet Rothenberg Pack (University of Pennsylvania), Burton A. Weisbrod (Northwestern University) Center Staff President: Avi Weiss Director General: Suzanne Patt Benvenisti Senior Director of Strategic Partnerships: Michal Pozmanter Research Director: Alex Weinreb Arielle Avraham (Grants and Donor Relations Coordinator), Dudu Barazani (Maintenance), Benjamin Bental (Principal Researcher, Economics Policy Program Chair), Nachum Blass (Principal Researcher), Haim Bleikh (Researcher), Liora Bowers (Director of Finance, Operations and Policy Analysis), Gilad Brand (Researcher), Graeme Campbell (Intern), Dov Chernichovsky (Principal Researcher, Health Policy Program Chair), Tova Cohen (Project and Government Relations Manager), Maya Dolgin (Director of Community Relations), Hedva Elmackias (Office Manager), Gil Epstein (Principal Research Advisor), Hadas Fuchs (Researcher), Inbal Gafni (Publications Editor), John Gal (Principal Researcher, Welfare Policy Program Chair), Shavit Madhala (Researcher), Lior Morag (Online Media Associate), Laura Schreiber (Operations and Publications Associate), Anat Sella-Koren (Director of Marketing, Communications and Government Relations), Labib Shami (Senior Researcher), Yossi Shavit (Principal Researcher, Education Policy Program Chair), Kyrill Shraberman (Researcher), Tamar Friedman Wilson (Content Manager), Guy Yanay (Research Assistant), Noam Zontag (Researcher) Past Directors: Israel Katz (z"l), Yaakov Kop, Dan Ben-David Policy Program Fellows Economic Policy Program Benjamin Bental (Chair), Yarom Ariav, Adi Brender, David Brodet, Doron Cohen, Reuben Gronau, Jack Habib, Moshe Mandelbaum, Shuki Oren, Dan Peled, Assaf Razin, Haim Shani, Eytan Sheshinski, Shmuel Slavin, Avia Spivak, Michel Strawczynski, Shlomo Yitzhaki, Ben Zion Zilberfarb Education Policy Program Yossi Shavit (Chair), Chaim Adler, Shlomit Amichai, Hanna Ayalon, Shlomo Beck, Carmel Blank, Inas Deeb, Yigal Douchan, Eli Eisenberg, Yariv Feniger, Isaac Friedman, Yossi Gidanian, Meir Kraus, David Maagan, Zamira Mevarech, Yael Navon, Rita Sever, Rami Suleimani, Eran Tamir, Yuval Vurgan, Zvi Yanai, Noam Zussman Health Policy Program Dov Chernichovsky (Chair), Dorit Adler, Alexander Aviram, Uri Aviram, Ran Balicer, Shlomo Barnoon, Roei Ben-Moshe, Yitzhak Berlowitz, Nakhle Beshara, Bishara Bisharat, Orna Blondheim, Adi Brender, Shay Brill, David Chinitz, Tal Dovev, Asher Elhayany, Miri Endblad, Leon Epstein, Ronni Gamzu, Yigal Ginat, Dan Greenberg, Eitan Hai-Am, Jonathan Halevy, Eran Halperin, Avi Israeli, Orit Jacobson, Avigdor Kaplan, Rachel Kaye, Jacob Menczel, Shlomo Mor-Yosef, Adi Niv-Yagoda, Meir Oren, Baruch Ovadia, Eran Politzer, Sigal Regev- Rosenberg, Anat Arbel Shamir, Haim Silber, Varda Soskolne, Yohanan Stessman, Aviad Tur-Sinai Labor Policy Program Hagai Atkas, Mark Feldman, Gil Epstein, Daniel Gottlieb, Eric Gould, Nitsa Kasir (Kaliner), Yaakov Loupo, Miki Malul, Guy Mundlak, Dalia Narkis, Tali Regev, Dmitri Romanov, Moshe Semyonov, Ofer Setty, Sigal Shelach, Arie Syvan, Yossi Tamir, Aviad Tur-Sinai Social Welfare Policy Program John Gal (Chair), Michal Almog-Bar, Ofer Arian, Uri Aviram, Avishai Benish, Orly Benjamin, Nissim Cohen, Abraham Doron, Israel Doron, Zvi Feine, Daniel Gottlieb, Anat Herbst-Debby, Roni Holler, Nitsa Kasir (Kaliner), Chana Katz, Michal Koreh, Michal Krumer-Nevo, Lihi Lahat, David Levi-Faur, Ibrahim Mahajne, Miki Malul, Ronen Mandelkern, Menachem Monnikendam, Baruch Ovadia, Nadav Perez-Vaisvidovsky, Yekutiel Sabah, Talia Schwartz-Tayri, Shmulik Sheintuch, Sigal Shelach, Roni Strier, Yossi Tamir, Idit Weiss-Gal, Uri Yanay, Amos Zehavi 5 A Message from the Chair of the Board of Directors It is a great pleasure to present the Taub Center’s Singer Series State of the Nation Report 2018. As it does every year, this publication sheds light on some of the central social and economic trends, successes, and concerns that face Israeli society. Its various chapters and synopses serve not only to deepen our understanding of these issues, but also to turn our attention to topics that are of particular importance at this point in time. Israel’s economic policies in the near future, and the sources of growth it fosters, will determine the strength of the economy in the long term; its education and employment policies today will shape the skills of tomorrow’s workforce; its health and welfare policies will impact a population that is both aging and growing as a result of high fertility. Whether you are a policy maker, a civil servant, a business leader, a social activist, a philanthropist, or a layperson, there is important information awaiting you in this Report. I trust that it will serve as a bedrock of unbiased and professional analyses from which we can learn how to make Israel a better society and advance the well-being of all Israelis. Helen Abeles Chair, Taub Center Board of Directors 6 A Message from the Director General Since its founding in 1982, the Taub Center’s talented and dedicated professionals have worked to ensure that Israel’s policy makers and public are provided with tools they need to make informed economic and social decisions, helping to improve the lives of all those who live in Israel. With the support of our dedicated lay leaders, the Center continues to expand the dissemination and influence of its findings, reaching new critical audiences through a variety of mediums and formats. From meetings with the country’s senior- most leaders to our active traditional and social media programs, from infographics and short videos to an in-depth podcast, from full-length lectures to short executive summaries, we do our utmost to ensure our research is accessible to all those who stand to benefit from it. We are very pleased to share this year’s Singer Series State of the Nation Report and hope you find the research
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