All Policy Papers

This paper describes and explains the significant increase in employment since 2002, and its effect on wages, income and poverty.

This paper presents a measurement framework identifying the strengths and weaknesses underlying gaps in labor income between Arabs and non-Haredi Jews, and the social and economic components necessary for reducing these gaps.

The purpose of this study is to outline the demographic and economic characteristics of the Haredi-Hasidic population group in the U.S., aiming to facilitate a better understanding of the characteristics of this group in terms of education, employment, and income. Its necessity stems from the fact that most data regarding the U.S. Haredi population is based on independent surveys, or on studies conducted at least a decade ago.

Israel’s high-tech sector has the greatest relative economic impact on its national economy ‎than in any other country, contributing 10% of national employment and 20% of GDP in ‎‎2023, twice the share in the U.S. and more than 2.5 times that of leading European ‎economies (Austria, Denmark, Finland, the Netherlands, and Sweden).

There is a considerable gap in wages and in monthly labor income per capita between non-‎Haredi Jews and Arabs in Israel, and understanding the source of this gap is an important ‎step towards reducing it. This study examines the contribution of human capital disparities ‎to these gaps between non-Haredi Jewish men and Arab men, and between non-Haredi ‎Jewish women and Arab women.

This paper presents the joint vision of the Aaron Institute and the Yated Foundation to position Israel among the world’s top ten economies in GDP per capita within 15 years, through inclusive and sustainable growth. It identifies key strengths and risks and outlines a growth strategy based on human, public, and private capital.

This paper outlinesthe key challenges for the Israeli economy, and the reforms required to restore Israel’s long-term growth trend and place the debt-to-GDP ratio on a converging path.

This analysis examines the impact of security and political developments, with an emphasis on the fighting in Gaza, on Israel’s economic resilience between 2025–2035. It presents three short-term and four long-term scenarios, highlighting the economic risks of occupying Gaza versus the benefits of growth-supporting reforms in ensuring stability and growth

This paper presents the Aaron Institute's Pyramid of Sustained Growth and Poverty Reduction, a model that visually describes the conceptual framework for planning economic strategy and allows for examining the relative state of the economy compared to benchmark countries.

This study identifies labor market disparities between Arab and Jewish communities, assesses the impact of the war on employment of the Arab society, and provides policy recommendations to address employment challenges and enhance the integration of Arabs into high-quality employment opportunities.

This paper investigates the economic incentives for ultra-Orthodox men to enter the workforce and evaluates the financial feasibility of their employment.

This paper discusses the changes in households’ labor income over the last twenty years, possible scenarios for the coming years, and outlines policy supporting the continuing growth of the Israeli economy and the closing of gaps between population groups.

The war which broke out on October 7 has had a considerable economic impact on the Israeli economy, including the mass deployment of IDF reserve soldiers, evacuation of residents of frontier communities, restrictions imposed by the Homefront Command, and a decrease in the consumption of goods and services.

This policy paper explores interventions to encourage more female students to pursue technological excellence tracks in middle schools, aiming to reduce gender gaps in the tech sector.

In this paper, we present an update of the growth forecasts for 2024 and 2025 in light of the prolonged conflict, particularly in the north, as well as policy recommendations aimed at stabilizing the economy and mitigating economic risks.

This policy paper underscores the significance of economic resilience in Israel's Arab society and addresses disparities between Jewish and Arab citizens. It proposes measures to enhance economic prospects and trust in government institutions, benefiting both Arab society and Israel overall.

This paper analyzes economic growth sources and labor productivity changes, providing scenarios for 2023-2025 amidst potential threats. It suggests an economic strategy to boost productivity and reduce living costs.

his paper outlines the impacts of the October Seventh War on the Israeli economy and puts forth recommended policy measures, with a particular focus on the implications for the 2024 budget.

This study aims to examine the obstacles hindering the integration of ultra-Orthodox women into high-quality employment, with the ultimate goal of mitigating the wage gap between this demographic and non-Orthodox women.

This paper presents comprehensive objectives for transportation accessibility nationwide up to the year 2040, accompanied by corresponding transportation strategies. Additionally, it assesses the anticipated impact of these objectives on the country's GDP and, consequently, on the overall welfare of its residents.

This paper outlines an inter-ministerial initiative to enhance Hebrew studies in Arab society, standardize practices, and implement a consistent assessment to eliminate proficiency barriers.

This short statement presents Aaron Institute's position regarding the economic challenges faced by Israel in light of the war of October Seventh, and recommended policy for Israel's economic resilience

This paper examines the decrease in employment and the increase in the rate of NEET (Not in Employment, Education, or Training) among young Arabs, offers possible explanations for these trends, and recommends policy measures for the quality integration of young Arabs in the economy and society.

This paper examines the quality of integration into the labor market of bachelor's degree holders from the Arab society who earned the degree from institutions of higher education in Israel, offers valuable insights for public policy and emphasizes the importance of increasing access to higher education among the Arab population in Israel.

This paper reviews the gaps in digital capacities and distant-learning capabilities between the Arab and Hebrew education systems and the difficulties and barriers that arose from the field during the COVID-19 crisis, and offers recommendations to reduce the gaps.

This paper describes the tools available to the regulatory authority, the recommended work framework for the authority, and the areas of action required to promote optimal regulation in Israel.

The purpose of this study is to outline the demographic and economic characteristics of the Haredi-Hasidic population group in the U.S., aiming to facilitate a better understanding of the characteristics of this group in terms of education, employment, and income. Its necessity stems from the fact that most data regarding the U.S. Haredi population is based on independent surveys, or on studies conducted at least a decade ago.

This study aims to determine priorities for promoting digital transformation and to give the government tools to choose the projects with the highest efficiency and benefit to the economy. We recommend prioritizing the factors whose macroeconomic contribution to productivity and growth is most significant.

This study explores the impact of historical developments since the establishment of the State of Israel and sociological characteristics unique to ultra-Orthodox society on recent changes within the community and its relationship with the state. Additionally, it investigates the economic trends prevalent in recent years.

This policy paper examines the barriers to the employment of adults before and after retirement age in the State of Israel and offers solutions to address these barriers.

This paper presents the current status of ultra-Orthodox men employed in high-tech and those who wish to integrate into high-tech and examines the possible ways to increase the number of Haredi men employed in high-tech.

This paper presents a mapping and identification of barriers for young Arab adults to integrate into STEM higher education and quality employment. Recommendations include guidance and advice, skills acquisition, setting measurable goals and monitoring compliance.

This work investigates the decline in Arab men's employment occurred before the COVID-19 crisis throughout 2014-2019, focusing on young men aged 18-24, and the characteristics of the NEET (Not in Education, Employment, or Training).

This paper examines the economic implications of the employment of adults in Israel and the consequences of (lack of) employment on the healthy aging of the population, on the individual and on the economy.

This paper points to a historic opportunity facing the Israeli economy to mobilize resources and direct them to invest in growth-accelerating projects, such as public infrastructure, quantitatively examining the growth scenario and the expected debt burden resulting from the policy of increasing investment in public capital financed by increasing debt.

This paper presents the reforms which are necessary to address the main growth barrier facing the Israeli economy – low labor productivity. Our recommendations include investment in public infrastructures, encouraging private investments and employment and human capital policy.

This paper presents the need for increased public and private investment to address productivity gaps, the necessary policy in regard to public investment, the proposed policy for encouraging private investment and the funding aspects of government investment.

This paper outlines the required employment and human capital policy, which includes setting targets, establishing employment schemes, implementing a reform in the vocational training system and establishing an Employment Ministry.

This paper presents a macroeconomic analysis of the sources of the productivity gap between Israel and comparable OECD economies, and proposes a comprehensive economic strategy for the Israeli economy.

This paper maps the barriers to promoting digitalization and digital transformation, and proposes a national plan for digital development, which includes clear targets and priorities, as a primary tool for increasing productivity and enhancing growth.

This paper presents the existing gaps between the Arab and (non-Haredi) Jewish populations in Israel in terms of digital infrastructures, digital literacy, and the usage characteristics of digital tools and services, and proposes short- and long-term policies to reduce these gaps.

This paper delves into the economic analysis of the war's impact on Israel's economy, particularly examining how the macroeconomic shifts resonate within Haredi society. Through this exploration, it aims to shed light on the multifaceted implications of the ongoing war on the Haredi population.

Barriers to Language Learning and How to Remove Them

This paper examines the research literature on the integration of digital tools in education and on the evaluation of educational intervention programs, and finds that a strategic digital program should include measures in four aspects.

This paper proposes a planning model for the energy sector that simultaneously addresses three objectives: electricity supply reliability, the share of electricity generated from renewable energy, and a competitive price.