The Organization for Economic Cooperation and Development (OECD) stated in a report released yesterday, Tuesday, that Israel should eliminate support provided to students of religious schools in order to narrow social and economic gaps in the country. The report noted that certain groups, specifically the Haredim (ultra-Orthodox Jews) and Arab Israelis, are not fully represented in the thriving advanced technology sector and suffer from lower employment rates, fewer working hours, and lower wages. The organization added that the proportion of working poor in Israel is generally high and the poverty rate is significantly above the OECD average.
In addition to recommending the elimination of government subsidies for students in Jewish religious schools, the OECD also called for the adaptation of childcare support to align with parental employment. Only half of the religious Jewish men in Israel are employed, as they prefer to study the Torah and other religious texts in religious institutions. In contrast, about three-quarters of Haredi women are employed, but their salaries are much lower than the general average.
The ruling coalition in Israel, composed of religious and nationalist parties, has increased spending and enhanced incentives for students in religious schools. The report faced criticism from Moshe Gafni, head of the United Torah Judaism party and chairman of the Knesset Finance Committee. Gafni stated that Jews have endured for thousands of years thanks to the study of the Torah, saying, “Non-Jews do not understand this."
The OECD also recommended increasing funding in Arab Israeli areas and reinstating support for the second earner in households in the form of an earned income tax credit. The organization noted in its report titled "Towards Growth" that despite significant progress, barriers to foreign trade and investment remain high, with Israel's exposure to foreign trade lower compared to other small OECD countries. The report urged Israel to continue reducing tariffs and non-tariff barriers and to promote smoother trade regulations.
The organization emphasized that Israel should move forward with a plan to develop a wholesale electricity market and increase the share of renewable energy in electricity generation, adding that Israel's share is one of the lowest in the OECD.
