Showing posts with label Taub. Show all posts
Showing posts with label Taub. Show all posts

Thursday, July 3, 2014

Gaps

My colleagues at the Taub Center for Social Policy Studies in Israel have put out their 2014 "Picture of the Nation." It contains some fascinating reports on Israel's progress and challenges.

For example ... achievement in core curriculum subjects has improved in recent years. But the achievements of Israeli children are still at the bottom of the developed world, while educational gaps are the highest.

In Israel's increasingly segmented educational framework, there's a large - and growing - share of children receiving what can only be described as a developing-world education.

There are large gaps between Hebrew-speaking kids and Arabic-speaking kids.
So the fact that Arab-Israeli kids are showing the biggest gains is a big achievement. But the gaps are still large.



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Wednesday, June 25, 2014

Not the competition we want to win (again)

My colleagues at JDC's macroeconomic research institute, the Taub Center for Social Policy Studies in Israel, are doing some fascinating research on how Israel's society and economy look.

One graph in particular fascinated me. Even after you exclude Arab-Israelis and the Ultra-Orthodox, poverty rates in Israel are still among the highest in the developed world. Almost a quarter of Israelis live under the poverty line.

In fact ... compared to all the other developed countries there's only one that beats Israel. The US.





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Monday, June 16, 2014

Things that take too long

I'm on a train heading up to the Jewish Alliance of Greater Rhode Island. Together with JDC's CEO, Alan Gill, I'm going to speak at a number of events to thank the Alliance for their support of the Joint and our partnership in places like Poland and Afula. But, train journeys being what they are ... my mind got wandering to things that take a long time. And sometimes, too long.

My colleagues at JDC's macroeconomic research institute, the Taub Center for Social Policy Studies, have a fascinating review on labor productivity in Israel. One of their findings is how long it takes to start a business. The OECD average is 13 days. The US is 6 days.

Israel ... is 34 days. Over a month to overcome bureaucracy before you can start production. High concentration in the domestic market, lots of regulation, not enough competition. So ... higher domestic prices, lower attractiveness of the economic environment.

We have to fix this. Because money won't flow to physical and capital investment that slow down growth.


Monday, June 9, 2014

What will become of us?

Some 40% of Israel's children live under the poverty line according to market incomes (before welfare and taxes). Only Poland, in all the developed world, has a higher child-poverty rate.

After the welfare and tax systems are taken into account, disposable income poverty in Israel among children is the highest in the West. It actually increased by 61% from 1992-2011.

We may be a Start-Up Nation. But many of our kids won't be in it.

My colleagues at JDC's macroeconomic research institute, the Taub Center for Social Policy Studies in Israel, have done some fascinating research on this subject ... take a look at this chart for an example:



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Sunday, June 1, 2014

Not the kind of competition we want to win

My colleagues at JDC's macroeconomic research institute, the Taub Center for Social Policy Studies, shared a fascinating table in their 2014 report on Israeli society and economy.

Israel's educational inequality is consistently the highest in the developed world. And to the extent that education gives you an entry to the job market ... then education inequality shows you the challenge ahead. Namely - income gaps, social unrest, and more.

The gaps between pupils are consistently the highest in the developed world. We have to solve this. It's going to shape the future of Israel, and not in a good way.




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Monday, September 30, 2013

Now for the good news

Life expectancy for all Israelis has been increasingly steadily over the years. Non-Jewish Israelis have a higher life expectancy than populations in neighboring Arab and Muslim countries, and have surpassed the US too.

According to JDC’s macroeconomic research institute, the Taub Center, the life expectancy of Jewish Israelis continues to be higher than that of most developed countries.

Now, if we can just figure out the whole religion-state, Arab-Jew, left-right, Green-Line-Territories, Rich-Poor, secular-religious, Ashkenazi-Mizrachi thing ... we'll do great. 



Monday, September 23, 2013

The Challenge Ahead

Israel’s had a high birth rate for many years … so as an overall, the relative percentage of the elderly (65+) is low. But this is changing, and rapidly.

The ratio of elderly to working-age adults has been pretty stable for the last twenty years (about 160 to 1000), according to JDC’s macroeconomic research institute, the Taub Center. But in the next twenty years, the ratio is going to increase by forty percent (!), reaching 230 elderly for every 1000 working-age citizens.

What does this mean? A massive strain on funding elderly-care, increasing poverty, a need for elderly-employment, and more.

And we need to start thinking about this now.



Sunday, September 15, 2013

Israelis work more hours than in West

fascinating research from my colleagues in JDC's Taub Center for Social Policy Studies ...



Taub Center study reveals new findings on primary factors underlying Israel's low labor productivity, including longer working day, low capital investments, cumbersome bureaucracy
Ynetnews
Published: 09.10.13, 07:14 / Israel Business

Israel's labor productivity is among the lowest among developed countries, as shown in the soon to be published 2013 State of the Nation report by the Taub Center for Social Policy Studies in Israel. In addition, a labor productivity gap has been growing between the leading Western countries and Israel – with the G7 steadily pulling away from Israel since the 1970s.

Wages are highly dependent on the amount produced per hour – or what is commonly referred to as labor productivity.


In the study, Taub Center Executive Director Prof. Dan Ben-David looks at a host of key factors surrounding and underlying Israel’s problematic productivity. For example, the number of annual hours worked per person in Israel and in the G7 fell until the mid-1970s.

"While fewer Israelis participate in the labor force than is common in the leading Western countries, those who do work many more hours each year,” says Prof. Ben-David.



"In fact, employed Israelis work have worked more hours than employed workers in the G7 countries since the mid-1970s, and the gaps in work hours have only grown: The number of hours worked in the G7 has fallen steadily for four straight decades while the number of annual hours worked by the average Israeli in 2012 – which fluctuated broadly in recent decades and has been falling since the late 1990s – roughly equaled the number of hours worked over three decades earlier.

"Though Israelis who do participate in the labor force work more hours than workers in the leading western countries, their productivity per hour worked is considerably less, and falling further and further behind (in relative terms) the G7 labor productivity.”



While there are undoubtedly important factors that are idiosyncratic to different business sectors, there are also a number of related economy-wide determinants. Capital plays a key role in spurring productivity – and here, as Ben-David finds, Israel has major problem.

In addition to the problematic level of the country’s human capital infrastructure and to the multi-decade neglect of its transportation infrastructure, Israel’s capital formation is at the low end of the OECD.

Increasing national burden

Capital and labor are considered substitute factors of production. An increase in the capital stock improves labor productivity, which is why it is not a coincidence that there exists such a strong positive relationship between capital formation, in general, and labor productivity.

So, as Ben-David notes, "it should come as no surprise that a country with relatively low national levels of physical and human capital is exhibiting problematic productivity growth at the national level."

In addition to all of the above factors that hinder Israel’s productivity growth, there is also the country’s cumbersome governmental bureaucracy, requiring the diversion of even more resources away from actual production of goods and services, lowering productivity even further.

For example, the number of days needed to start a business in Israel (34 days) is the second highest in the Organization for European Economic Co-operation and Development (OECD) – two and a half times the OECD average of 13 days.



The high bureaucratic costs imposed on both Israeli and foreign firms interested in doing business in Israel reduce the competition so essential for creating the pressure to invest, innovate, and produce better goods and services at lower cost. Though the regulation has been somewhat reduced, it is still substantial and it continues to extracts a high price in terms of productivity.

"The country’s small domestic market is concentrated in the hands of too few individuals and it suffers from insufficient competition – a crucial factor in spurring physical and human capital investments necessary for productivity growth," says Prof. Dan Ben-David. "All of these factors combine to yield higher domestic prices that reduce the economic viability and attractiveness of Israel’s economic environment even more.

"The problems associated with relatively low rates of employment, the high number of hours worked and the labor productivity that is lagging ever further behind the leading developed countries combine together to create an increasing national burden on the shoulders of those who bear it. This is a significant issue that is worsening over time and requires systemic long term attention and treatment by Israel’s policy makers.”

Monday, September 9, 2013

Growth and Spending

A really interesting chart from my colleagues at JDC’s macroeconomic research institute, the Taub Center: Israel’s GDP per capita grew in the last 15 years by more than a quarter. Private consumption grew by more than a third.

Great, right?

But spending on social services like education and health grew by only 6%.

So … when the share of spending on these services declines so significantly, the consequences are more poverty, more need, and more vulnerable populations.



Saturday, August 24, 2013

Working Men and Women

Some more fascinating research from our colleagues at JDC’s macroeconomic research institute, the Taub Center

Israel’s employment problem cuts across all major population groups. 

The largest employment declines have been among the Muslim, Druze and Haredi (Ultra-Orthodox Jewish) men.

On the other hand, in all female populations, we’ve seen significant increases in employment. Among non-Haredi Jewish women, employment rates are now higher than the G7 average. Among all other women, the gaps are closing fast, since their employment rates are rising more quickly than the G7 rates.




Thursday, August 15, 2013

Some things cost more than others

In the United States, it takes, on average, 2.9 years of median income to buy a house. But in Israel it’s much, much more expensive. An Israeli needs 7.7 years of median income to buy a median home, according to JDC’s macroeconomic research institute, the Taub Center.

And what's a median home in Israel? An apartment.


The cost of housing in Israel is one of the reasons why poverty is such a critical issue that we face. 



Monday, July 29, 2013

Innovative doesn't count for much if you can't afford to innovate

JDC’s Taub Center for macroeconomic research in Israel has an impressive report out on the “State of the Nation” in 2013. There’s a compelling case there that Israel’s current macro picture is only positive in relative terms. The long-term trajectories are troubling. The more we know about them, the more we can act.


These two graphs, I think, really put the entire picture in context. On the one hand, Israel is one of the most innovative countries in the world (based on the number of patents relative to population) but we have incredibly low labor productivity (amount of GDP per hour worked). In 2011, Israel’s labor productivity was lower than 23 of the OECD countries. And when you have low labor productivity, you're going to have lower hourly wages, lower efficiencies and lower employment.

Sunday, June 9, 2013

Israel Prods Ultra-Orthodox to ‘Share Burden’

I took a mission last month to see JDC-Israel programs, including an inspiring visit to a Haredi program in the Israel Air Force. This is going to be one of the most important issues we face in Israel in the coming years...


Israel Prods Ultra-Orthodox to ‘Share Burden’

Rina Castelnuovo for The New York Times
An ultra-Orthodox man waited to be interviewed at Mafteach, a Jerusalem employment agency whose name means “key.” More Photos »
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JERUSALEM — One ultra-Orthodox job-seeker listed on his résumé, under technical skills, his success in building a hut on his porch for the annual fall harvest holiday and preparing his kitchen for Passover. Another brought a curriculum vitae handwritten on fax paper, folded in his pocket.
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Rina Castelnuovo for The New York Times
Ultra-Orthodox men waiting to be sworn in as soldiers in Jerusalem.More Photos »

Readers’ Comments

"How difficult can it be to devise parallel national service for those who cannot serve in the army for a wide variety of reasons. "
S.L., Briarcliff Manor, NY
When Binyamin Yazdi, an employment counselor, asks ultra-Orthodox clients their e-mail addresses, many respond, “What’s that?”
Israel has been consumed in recent months with the challenge of integrating the insular, swelling ultra-Orthodox minority, known as Haredim, into society. The animating theme of the last election campaign was a call for Haredim — and Israeli Arabs — to “share the burden” of citizenship, particularly in military service, and last week a Parliament committee approved legislation to end widespread draft exemptions for yeshiva students.
But while the draft is the emotional issue that has drawn thousands to protests, the low number of ultra-Orthodox men with jobs is much more important, with a dire effect on the economy in terms of productivity, taxes and the drain caused by welfare payments.
Because of Orthodox men’s commitment to full-time Torah study and a fear of assimilation, only a little more than 4 in 10 of them work, less than half the rate of other Jewish men in Israel, and their average salaries are 57 percent of other Jewish men in the country. Nearly 60 percent of Haredi families live in poverty, and by 2050 they are expected to make up more than a quarter of Israel’s population.
“It’s clear this is a situation which cannot continue,” Stanley Fischer, the departing governor of the Bank of Israel, declared this spring, a warning underlined in a recent report to the cabinet from the National Economic Council.
Without a radical change, cautioned Yedidia Z. Stern of the Israel Democracy Institute, “the Israeli economy will collapse in two decades.”
The urgent new focus by the government, which recently allocated $132 million over five years for training and placement, comes after years of lower-key private efforts, most underwritten by the Israel branch of the Joint Distribution Committee, a nonprofit group that helps poor Jews worldwide. The committee spends $10 million a year on Haredi employment.
There are many barriers to scale. Haredi schools teach little math, science or English: one recent study said graduates had the equivalent of zero to four years of secular education. The community shuns the Internet. Many men want to work few hours, and some refuse to work in offices with women.
“I’m always sort of looking behind me and seeing what is the distance between me and the people I left behind — I try to keep it a small distance,” said Yisrael Shlomi, 23, who is enrolled in a special college preparatory course for Haredim and wants to work in computers. “I have a kosher telephone,” Mr. Shlomi added, referring to a cellphone with restricted or no Internet access. “I still wear the same clothes, I’m speaking the same way.”
Mr. Shlomi said the first time he saw a non-Haredi newspaper was in the campus cafeteria the first day of class. The second day, he opened it. “The borders are getting a little fuzzy,” he said.
Avner Shacham, chief executive of Beit Shemesh Engines Ltd., which has $75 million in annual sales of parts for jet engines, said the Haredi men he had hired at his factory the past few years had had a hard time. The workers cannot read the English manuals for machines. They reject overtime because they want to attend afternoon prayers. The factory’s kitchens are kosher, but some complain they are not the stricter glatt kosher.
“We have rules — the rules are the same for everybody,” Mr. Shacham said during a visit to his plant last week. “It’s a question of performance. Are you willing to reduce the performance of the airlines? Are you willing to decrease the security in flying?”
While Haredi culture everywhere prioritizes Torah study, it is only in Israel that so many pursue it full time. It was not always this way: in 1979, 84 percent of ultra-Orthodox men worked, close to the 92 percent of other Jewish men, according to the Taub Center for Social Policy Studies in Israel. Employment rates plummeted largely because those who skirted army service by citing Torah study as their vocation were blocked from seeking jobs. The new draft law — which still needs to be approved by the cabinet and Parliament — would remove that obstacle. At the same time, the budget scheduled to be approved this summer would drastically cut the subsidies their large families rely on, adding another incentive to work.
Unlike in many religious communities, Haredi women work at higher rates than men — about 61 percent, according to the Taub Center — in part to support their husbands’ Torah study. But that remains below the 82 percent of other Jewish women, and the Haredi women tend to be in low-wage jobs.
Even before the new public focus, change had begun. The number of Haredim in military or civilian service jumped to 2,321 last year from 305 in 2007. The Joint Distribution Committee has helped place 12,463 ultra-Orthodox Jews in jobs since 2005 — a small fraction of the estimated 346,000 Haredim over 20 years old in Israel, but part of an uptick since 2002, when 35 percent of Haredi men worked, according to the Bank of Israel.
The number of ultra-Orthodox attending mainstream colleges has also more than doubled to 7,350 over the past six years, thanks in part to a committee-financed program of special preparatory classes.
“I felt I was isolated from what’s happening in the country, and if I was going to advance in life I had to know the society,” said Yehoshua Salant, a 25-year-old father who is in such a program, linked to Bar Ilan University .
“My parents are not proud of me,” Mr. Salant acknowledged. “The silence is thundering.”
Of nine young men in Mr. Salant’s English class one recent evening, two had fathers who worked — one as a rabbinical court judge, the other publishing religious books. The sons aspired to computer programming, social work, accounting, engineering, owning a business.
“I’ve been in the yeshiva eight years, and I see that I’m not really succeeding — it was hard for me to sit all those hours,” said a 24-year-old from Bnei Brak who spoke on the condition he be identified only by his first name, Haim. “I don’t plan to work in a grocery. I want a real salary.”
Many of those involved in the push to integrate Haredim said the recent public outcry had only stymied progress. Twice this month, ultra-Orthodox soldiers in uniform have been attacked in Haredi enclaves. Mafteach, the employment service whose name is Hebrew for “key,” has seen a slight drop in clients in 2013 after years of steady growth.
“The more you push people, the more they close inside,” said Naftali Flintenstein, who runs Mafteach in Jerusalem and, like his seven employees, is Haredi. “It has a feeling of imposition, or forcing.”
While many men are referred to Mafteach by banks where they have debts and arrive desperate for immediate work, the organization tries to steer them into career training programs. His own black hat and long coat on the bookshelf behind his desk, Mr. Yazdi, 26, makes clients comfortable by quoting Torah verses and sharing his own struggle to balance Torah study, secular courses, a job and child-care.
“For them, it’s like diving into a pool and not knowing whether it’s water or acid or rain,” he said.
Aharon, a 25-year-old father of three who asked that his last name not be published to protect his family’s privacy, came with the handwritten résumé on fax paper. He and Mr. Yazdi sat together at a computer to improve it. “If you were looking for a wife right now and I am your matchmaker, what would you say?” Mr. Yazdi asked.
They decided Aharon was punctual, orderly and had a strong work ethic. They emphasized his love of math and perhaps overstated his experience with calculations.
Aharon’s hands were on the keyboard, but Mr. Yazdi was dictating. Under personal skills, they put: “I have the will and ability to learn additional things.”
Rina Castelnuovo and Myra Noveck contributed reporting.

Monday, May 13, 2013

Third-World Economics and First-World Armies

Dan Ben-David, of JDC’s Taub Center, spoke last week in New York at the JDC Board meetings. As usual, his comments were incisive and memorable. In particular, I found his remarks about the 2011 demonstrations to be right on the mark.

In the 2011 demonstrations, 5% of the population came out one Saturday night to demonstrate. This wasn’t connected to the peace process, to our neighbors or to the poor. 
This was by and about the middle-class, who were worried about the future of their State. 
That’s equivalent to 16.5 million Americans demonstrating about their fears and hopes.

They were demonstrating about the price of apartments, cottage cheese, kindergartens.

But this was just the tip of the iceberg.

And the iceberg itself is far more dangerous. And only now are we starting to discover just how big this iceberg actually is.
And we’re sailing right towards it.

Over the last forty years, Israel’s standard of living has declined compared to all Western countries. We were one of the most egalitarian countries in the world, now we’re pretty much the most unequal.

What’s most interesting is how the massive political upheaval this year has been shaped by what happened two years ago. Kadima has been pretty much wiped out, after being the largest party in the last Knesset. Yesh Atid has come from zero to being the second largest party and perhaps the most significant political force. 
And in the elections we ignored Syria, the Palestinians, our entire neighborhood. We focused on internal issues and demographics. 
The reason for that is that there’s increasingly a realization that national security also means whether or not our children will choose to stay in Israel.
Demography also means how many people have the will and the capability/skills to work and earn a living in a modern economy.

The achievements of 50% of Israel’s children are below those of Third-World countries.

And as they age into the adult population and (because of higher birth-rates) become the majority, were going to discover that Third-World economics can't sustain a First-World state, or a First-World army.