Unlocking Opportunities for Children in Israel

Executive summary

A young and diverse society facing a mobility challenge

Israel stands out within the OECD as one of its youngest and most demographically dynamic societies. With a median age of 29 and 28% of its population under 15, Israel has the highest share of children in the OECD. Despite a total population similar in size to Austria, Greece or Switzerland, Israel has roughly twice as many children under 15. This demographic profile presents both an opportunity and a challenge. Children occupy a central place in Israeli society, and the country’s future economic performance and social cohesion will depend heavily on how effectively it supports their development.

Israel’s child population is highly diverse. About three‑quarters are Jewish – including a substantial Haredi (ultra-Orthodox) community – while nearly one‑quarter are Israeli-Arab, predominantly Muslim, with smaller Druze and Christian minorities. These communities differ significantly in socio‑economic outcomes, educational pathways, labour market integration, and fertility patterns. As a result, disparities between groups have far-reaching implications for national inequality, poverty, and social mobility.

Enhancing intergenerational socio‑economic mobility remains a core policy challenge. When children’s life chances are strongly determined by their family background, inequality becomes entrenched and economic potential is lost. Low mobility limits opportunity, undermines fairness, weakens social cohesion, and reduces long-term productivity. In Israel – where income inequality and poverty rates are among the highest in the OECD – improving mobility is essential for both equity and growth.

Mobility in Israel: Progress with persistent barriers

In comparative terms, Israel ranks around the OECD average in intergenerational mobility. Like many peers, it experienced strong upward absolute mobility for cohorts born between 1940 and the late 1970s, particularly in education and occupations: about 70% of those born in the 1970s to parents without tertiary education surpassed their parents’ attainment. However, this progress has slowed for younger cohorts.

High absolute mobility does not imply equal opportunity. Relative mobility remains limited, with a persistent “sticky floor”: children from disadvantaged backgrounds are much less likely to reach high educational or occupational status. Those with low-educated parents are less than one‑quarter as likely to attain high education as peers with highly educated parents – below the OECD average. In earnings, individuals born in the bottom income quartile have only about a one‑in-three chance of reaching the top quartile.

Mobility is strongly shaped by geography, gender and ethno-religious background. Growing up in high-opportunity areas significantly improves prospects for children from low-income families, underscoring the role of place‑based investment. While women have made gains in education, their earnings mobility remains constrained by structural barriers. Disparities are particularly marked for Israeli-Arabs and Haredim, who face distinct barriers to upward mobility. As these groups represent a growing share of the population and are overrepresented among the disadvantaged, reducing these gaps is key to limiting inequality and supporting long-term economic and social sustainability.

Perceptions of mobility: Between optimism and realism

Public perceptions of mobility in Israel present a nuanced picture. As in many OECD countries, individuals tend to overestimate their own upward mobility while expressing scepticism about mobility in society overall. Many Israelis believe they have climbed the social ladder, even when objective indicators suggest limited movement. At the same time, there is widespread concern that opportunities for advancement are constrained at the societal level.

There is strong public support for promoting equal opportunity. A large majority believe more should be done to ensure everyone has a fair chance to succeed, and many favour raising the minimum wage, improving access to education, and strengthening support for disadvantaged communities. However, support for increasing taxes – including on high-income earners – remains limited, and trust in government has declined sharply over the past decade. This creates a complex policy environment in which demand for greater equality coexists with resistance to certain redistribution mechanisms.

Child well-being: The foundation of future mobility

Child well-being is central to shaping future mobility. Early-life conditions influence cognitive development, educational attainment, health, labour market prospects, and overall well-being. Disparities that emerge in childhood often persist into adulthood.

Israel faces particularly high levels of child poverty. At 20%, the child income poverty rate is significantly above the OECD average of 12%. Poverty rates among Haredi and Israeli-Arab children approach 50%. Poverty often persists even among children with working parents, especially in large households, and the tax-and-transfer system reduces child poverty only modestly by OECD standards.

Child health outcomes are generally strong on average, with low infant mortality and moderate obesity rates, but significant disparities remain. Infant mortality among Israeli-Arabs is nearly three times that of Jewish children, and obesity rates are higher among Israeli-Arab boys.

Participation in early childhood education is high overall, but disadvantaged groups – particularly Israeli-Arabs – face lower access to subsidies and structural barriers. Educational inequalities widen over time: Israel performs below the OECD average in international assessments, with large gaps between Hebrew- and Arabic-speaking students. University eligibility is substantially lower for Israeli-Arab and especially Haredi students, and early labour market disengagement is high, particularly among Israeli-Arab youth.

Despite these challenges, Israeli adolescents report relatively high life satisfaction compared to OECD peers. However, psychosomatic complaints – especially among girls – have increased, pointing to rising mental health concerns.

A strategic imperative for inclusive mobility

The report’s central finding is clear: disparities in child well-being – particularly among Israeli-Arab and Haredi communities – are likely key drivers of limited social mobility and persistent inequality. Given Israel’s demographic trajectory, improving outcomes for children in these communities is not only a matter of fairness but a strategic economic imperative.

Promoting inclusive mobility will require strengthening early childhood supports, improving educational quality and equity, addressing geographic disparities, enhancing labour market integration, and tackling discrimination. Investments in children today will determine Israel’s capacity to reduce poverty, boost productivity, and maintain social cohesion in the decades to come.

Ensuring that all children – regardless of background – have genuine opportunities to thrive is essential for building a more mobile, equitable, and resilient society.