Boosting productivity in sheltered sectors is key. Current efforts to strengthen competition in these sectors, especially agriculture and banking, are welcome and should be pursued. Improvements in public transport and a more effective education system could better integrate of under-privileged groups into the labour market and increase inclusive growth.
Source: OECD June 2016 Economic Outlook database; OECD, Income Distribution and Poverty database; and OECD Secretariat calculations from EU-SILC – preliminary results.
Ben-David, D. (2013), “Labour Productivity in Israel”, State of the Nation Report, Taub Center.
Giorno, C. (2016), “Boosting competition on Israeli markets”, OECD Economics Department Working Papers, No. 1287, OECD Publishing, Paris.
Bank Of Israel (2013), Annual report 2012, Box 2.1.
Bank Of Israel (2014), Annual report 2013, Box 2.1.
The Ministry of Finance’s initiative taken in December 2015 to create an ad-hoc Commission headed by its Director General to recommend measures to increase productivity.