Trends in the Labor Market

TAUB Policy Paper, July 2017

32 Pages Posted: 10 Jul 2020

See all articles by Claude Berrebi

Claude Berrebi

Hebrew University of Jerusalem - School of Public Policy; Hebrew University - School of Public Policy ; Princeton University; UCLA; RAND Corporation; Taub Center

Kyrill Shraberman

Taub Center

Shirley Yarin

Taub Center

Date Written: July 31, 2017

Abstract

This work looks at two highly influential trends in Israel’s current and future labor market. One has to do with changing occupational distribution; the other relates to changes in returns to education. The study finds that between 2013 and 2015 the number of work hours rose in those occupations at low risk of automation and computerization while the number of work hours in high risk occupations fell. This trend was especially prominent among women, and to a lesser extent among Arab Israelis and immigrants (versus the non-immigrant Jewish population).

An examination of returns to education finds an increase in the contribution of one year of formal education to wages between 2003 and 2014. Here, too, there are differences between men and women and the different social sectors. Especially prominent is the relatively consistent rise in the returns to education among immigrant men, and the larger increase among women than among men.

On the one hand, these developments reflect the Israeli labor market’s resilience and the opportunities available in it as the labor force adapts to an information and service economy. On the other hand, there are implications regarding wage distribution, among them the polarization in the labor market and rising wage inequality.

Keywords: Labor markets, Israel, future labor, occupations

JEL Classification: J00, J01, J08, J18, H00, H8

Suggested Citation

Berrebi, Claude and Shraberman, Kyrill and Yarin, Shirley, Trends in the Labor Market (July 31, 2017). TAUB Policy Paper, July 2017, Available at SSRN: https://ssrn.com/abstract=3629289

Claude Berrebi (Contact Author)

Hebrew University of Jerusalem - School of Public Policy ( email )

Jerusalem, 91905
Israel
+97225880151 (Phone)

HOME PAGE: http://https://en.public-policy.huji.ac.il/people/claude-berrebi

Hebrew University - School of Public Policy ( email )

Jerusalem, 91905
Israel
+97225880151 (Phone)

HOME PAGE: http://https://en.public-policy.huji.ac.il/people/claude-berrebi

Princeton University ( email )

Woodrow Wilson School
Public and International Affairs
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United States
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HOME PAGE: http://wws.princeton.edu/sites/default/files/person/cvfiles/CV-20190101-HU-Princeton.pdf

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RAND Corporation ( email )

Santa Monica, CA
310-393-0411 (Phone)

HOME PAGE: http://https://www.rand.org/pubs/authors/b/berrebi_claude.html

Taub Center ( email )

15 Ha'ari Street
Jerusalem
Israel

HOME PAGE: http://dev.taubcenter.org.il/claude-berrebi/

Kyrill Shraberman

Taub Center ( email )

15 Ha'ari Street
Jerusalem
Israel

HOME PAGE: http://taubcenter.org.il/

Shirley Yarin

Taub Center ( email )

15 Ha'ari Street
Jerusalem
Israel

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