Michal Tzuk Panel Discussion Inequality and Social Mobility - Lessons and Warning Sindns

,Ministry of Labor Social Affairs and Social Services

Employment & Social Mobility

Michal Tzuk Director of Employment Regulation & Senior Deputy Director General June 2017 :Source

The Income Mobility in Israel is Higher in Comparison to Other Countries Income Mobility Among Countries High level = High Mobility

:Source Corak (2016), Israel: Chief Economist at the Ministry of Finance, 2017

Income Mobility Among Specific Population Groups Relative change of each population group: • To what extent does each population group move up / down relative to the reference group (immigrants from African countries)

:Source Chief Economist at the Ministry of Finance, 2017

- The lower the Socio-economic Background Lower Achievements

Achievements of Hebrew and Arabic speakers students

Math

:Source Bank of Israel

Literacy

Science

Percentage of students from the bottom quartile of the Socio-economic conditions distribution that achieve grades from the top quartile of the Pisa result distribution in Science, 2015

Gaps in education also affect the labor market

Gini Index of Inequality in the Average score of Verbal and Quantitative Exams, PIAAC, 2014

:Source Bank of Israel

The PIAAC skills test score, ages 16-25, 2014

?How We Improve Income Mobility

Better Jobs Higher employment rates :Source

Improving Training Systems

High tech Sector

Access to information

Moving Towards 2020 Targets Employment Rates, 2010,2016 & 2020 Targets Among Target Populations, Ages 25-64 80% 78% 70%

75.4% 63%

60%

63%

53.7% 41% 72.8% 35.4%

30%

51.7% 20% 10%

74.3%

60.3%

50% 40%

77%

27.1%

32.4%

71.6%

77.3%

71.1%

77.3%

56.2%

39.8%

0% Arab Women Source: CBS

Haredi Men 2010

2016

Haredi Women 2020 Target

Arab Men

Yearly Target - 2016

Total Population

One Stop Center “One Stop Center� career centers, aimed to enhance employment in the Arab (22) and Haredi (12) populations, people with disabilities (1) and Ethiopian Israelis (9).

The centers offer: Soft Skills

VET Employer Relations Career Guidance Job Placement

Poverty Incidence – Households, 2015 Poverty Incidence by Employment Status 100%

Before taxes and transfers

93.4%

90% 80%

After taxes and transfers 74.4%

70% 60%

Poverty Incidence by Sectors

50% 36.9%

40% Before taxes and transfers

After taxes and transfers

100%

20%

90%

10%

80%

0%

70% 60% 50%

61.3% 48.7%

40%

29.2%

30%

19.1%

20% 10% 0% Ultra-Orthodox

Arabs

Total

Source: Poverty and Social Gaps Report 2015 - National Insurance Institute

19.1% 8.0%

Not Employed 57.5% 53.3%

29.2%

25.9%

30%

One Earner

5.6%

Two Earners

Total

Orthodox Women Employment, by Industry Orthodox and non orthodox women employment, by industry, age 25 – 64, 2015

19.17% others Households as employers Other service activities Human health and social work activities Education and social security Administrative and support service activities Professional, scientific and technical activities Financial and insurance activities Information and communications Wholesale and retail trade and repair of motor vehicles Manufacturing; mining and quarrying

Source: Processing of CBS Labor force survey data, 2015

44.39%

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Utilizing Human Capital Potential – Ethiopian Israelis Ethiopian Israelis and total population employment, by occupation, 2014

35% 30% 25% 20% 15% 10% 5% 0%

11%

7%

4%

Total population Source: CBS Labor force survey data, 2014

31%

27%

26% 7%

Ethiopian Israelis

6%

Improving Vocational training Systems

OJT

Pilot – “Talent ”Digital

Vouchers :Source

Work Plan in Co-operation with Employers

Apprenticeship (“Starter” Program)

A Class in“ the ”Workplace

Wage data 30000

Average Income of University Graduates, Born 1975-1985

25000

23476

22634

20000 16850 15000 10000 8607

27824

10137

10634

11816

5000 0

:Source Chief Economist at the Ministry of Finance, 2017

11937

17813

18846

Higher Education System Graduates of parents with income between 13,0000-10,000 ‫ אש"ח‬13-10 ‫שכר ממוצע של בוגרי תארים ששכר ההורים הממוצע בהם נע בין‬ 30000 24822

25000 20408

20000 15344

15000 10000

10894 11503 10284

17077 16718

16196 11455 11982

11376 8894

10088

8484

5000 0

social sciences Humanitie

Sociology

:Source Chief Economist at the Ministry of Finance, 2017

Engineerin

Economics

Agriculture

Psychology

Physics

Choice Matters 35000

30000 Others

‫אחרים‬

25000

Social Sciences ‫וחברה‬ ‫ רוח‬and Humanities

Linear (‫)רוח וחברה‬ ‫מדעי הטבע‬ Linear (‫הטבע‬ ‫ )מדעי‬Science Engineering / Computer ‫מדעי המחשב‬/‫הנדסה‬ natural sciences

20000

15000

10000

5000

0 350

400

450

500

:Source Chief Economist at the Ministry of Finance, 2017

550

600

650

700

750

Access to Information

Academic and other studies

:Source

“Job rating"

Job rating

Information about demand and supply

High-tech is not Diverse Enough

Men who are not Arab or ultra-Orthodox

3.4 2.7 44.3 49.5

Women who are not Arab or ultra-Orthodox Arab Ultra-Orthodox

:SourceProcessing of The Chief Economist at the Ministry of Finance, 2017 Source:

High-tech is not Diverse Enough People born in 1975-1985 in high-tech, second quarter Average wage of NIS 13,500

1.6 1.7 36.3 60.3

:SourceProcessing of The Chief Economist at the Ministry of Finance, 2017 Source:

Men who are not Arab or Ultra-Orthodox Women who are not Arab or ultra-Orthodox Arab Ultra-Orthodox

High-tech is not Diverse Enough ,People born in 1975-1985 in high-tech, third quarter Average wage of NIS 20,500

1.61 26.6

70.8

:SourceProcessing of The Chief Economist at the Ministry of Finance, 2017 Source:

Men who are not Arab or UltraOrthodox Women who are not Arab or ultraOrthodox Arab Ultra-Orthodox

High-tech is not Diverse Enough , People born in 1975-1975 Real-Tech, top quarter Average salary of NIS 34,500

17.7

1.3 0.3

80.7

:SourceProcessing of The Chief Economist at the Ministry of Finance, 2017 Source:

Men who are not Arab or Ultra-Orthodox Women who are not Arab or ultra-Orthodox Arab Ultra-Orthodox

Barriers to entering the high-tech industry and what :we are doing on the issue

Women

:Source

Minoritie s

Programming Communities

Open Doors

Trend

Experience

The Challenge of The Future Labor Market

Skills Skills Skills

Lost of Jobs

Life Long Learning

:Source

,Ministry of Labor Social Affairs and Social Services

Thank You!

:Source