Productivity and Growth

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.

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).

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 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 analyzes labor market disparities between Arab and Jewish societies, assesses the impact of the war on employment in Arab communities, and offers policy recommendations to address employment challenges and enhance the integration of Arab individuals into quality jobs.

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 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.

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 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 examines the OECD strategy for promoting digital transformation, and suggests ways to implement it in Israel through formulating a prioritized strategic plan, setting targets, and regular measurement, in order to realize the full potential of the promotion of digital transformation.

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.

The committee for economic advancement of the commerce and services sectors, headed by Ms. Michal Fink and Prof. Zvi Eckstein, drafted recommendations for a plan for economic advancement of the commerce and services sectors, with an emphasis on improving labor productivity and reducing the cost of living.

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 gauges the indirect effects that the metro project is expected to have on productivity and the GDP, as a result of increased agglomeration of workers and businesses.

This paper proposes a reform centered around advancing the Israeli economy and enhancing its productivity by promoting free competition and improving the ease of doing business, through the reduction of excess regulation and minimalization of the bureaucratic cost associated with unavoidable regulation.

Policy for Economic Recovery This paper outlines an economic plan which focuses on increasing high-quality employment and productivity, and includes a significant expansion of employment policy and growth-enhancing projects. A key feature of this plan is creating demand for workers in various economic sectors, and reducing barriers and uncertainties facing the business sector.

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.