Education and Unemployment in Israel, 1976-1994: Reducing the Anomaly
AbstractIn industrialized economies, unemployment rates are inversely related to education levels. Data from 1963 to 1994 show that Israel is an anomaly exhibiting an inverted U-shaped relationship. Workers with 9-12 years of schooling experienced the highest level of unemployment, in contrast to the 0-8 and 13 years of schooling groups that consistently had lower rates. Multivariate regression analysis of data for Israel, from 1976-1994, indicates that the inverted U-shaped relationship is moderating. The national unemployment rate and a time trend variable had positive and significant effects tending to strengthen the inverted U-shape relationship. However, an increase in the unemployment rate within the 0-8-education group relative to the 9-12 group and a decline in the labour force participation rate of the 0-8 group, overrode these factors, producing a move toward flattening the inverse relationship. The major factor responsible for the anomaly in the education-unemployment relationship in Israel appears to be the result of government policies intended to protect low-educated immigrants with large families. In recent years there has been a reduction in government support. This development seems to have reduced the extent of the inverted U-shaped relation, by gradually increasing the exposure of the least educated to labour market forces.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Toronto, Department of Economics in its series Working Papers with number nmeltz-99-01.
Length: 32 pages
Date of creation: 10 Jul 1999
Date of revision:
Contact details of provider:
Postal: 150 St. George Street, Toronto, Ontario
Phone: (416) 978-5283
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-05-30 (All new papers)
- NEP-EDU-2000-05-22 (Education)
- NEP-HIS-2000-05-30 (Business, Economic & Financial History)
- NEP-LAB-2000-05-30 (Labour Economics)
- NEP-LTV-2000-05-30 (Unemployment, Inequality & Poverty)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Johnson, William R, 1979. "The Demand for General and Specific Education with Occupational Mobility," Review of Economic Studies, Wiley Blackwell, vol. 46(4), pages 695-705, October.
- Rafael Gomez & Noah Meltz, 2002. "The Zero Sum Illusion: Industrial Relations and Modern Economic Approaches to Growth and Income Distribution," EUI-RSCAS Working Papers 37, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RePEc Maintainer).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.