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14 - Economics of Education in Israel

Inputs, Outputs, and Performance

from Part III - Investment in Human Capital, Productivity, and Inequality

Published online by Cambridge University Press:  04 February 2021

Avi Ben-Bassat
Affiliation:
Hebrew University of Jerusalem
Reuben Gronau
Affiliation:
Hebrew University of Jerusalem
Asaf Zussman
Affiliation:
Hebrew University of Jerusalem
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Summary

Israel is at a crossroads. It has one of the lowest productivity levels and one of the highest poverty rates in the developed world. With roughly half of its children receiving education that falls short of preparing them to work in a modern economy, future economic sustainability is not a foregone conclusion. On the other hand, the country’s leading universities are excellent, and they have been converging with the top American universities. The knowledge needed to raise Israel to viable economic trajectories exists within its borders, but the education system is not channeling this knowledge effectively to the primary and secondary schools, which in turn limits many pupils’ subsequent ability to enter quality higher education institutions. This chapter highlights aspects of education’s economic impact and focuses on a number of misconceptions about the state of education in Israel. It provides an overview of achievements and failings in Israel’s primary, secondary, and higher education systems, and highlights the importance of high school curriculum and academic field of study to adult wages.

Type
Chapter
Information
The Israeli Economy, 1995–2017
Light and Shadow in a Market Economy
, pp. 433 - 463
Publisher: Cambridge University Press
Print publication year: 2021

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References

Primary Sources

Achdut, L., Zussman, N., and Mayan, I. (2017). The Returns to Studying in Universities versus Colleges in Terms of Wages and Labor Market Qualifications. Paper presented at the “Labor Market Qualifications” Conference, Research Department, Bank of Israel, June 11, 2017.Google Scholar
Bank of Israel (2016). Basic Skills of Workers in Israel and Industrial Productivity. In Fiscal Survey and Selected Research Analyses. Jerusalem: Bank of Israel, 2936.Google Scholar

Secondary Sources

Ben-David, D. (2017). The Shoresh Handbook: Education and Its Impact in Israel, 2017–2018. Cochav Yair: The Shoresh Institution for Socioeconomic Research.Google Scholar
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