Israel’s Growth Paradox: Declining Productivity and Returns to Human Capital

This research examines the growing paradox in the relationship between human capital and labor productivity in Israel. Although the rate of applicants for higher education has multiplied since the early 1990s, it appears that Israel is on the same trajectory of growth in labor productivity that it has been on for the past four decades with little substantial improvement. This prompts the obvious question: Why are increases in education attainment not translating to an increase in the output per worker? Why is more education not leading to faster economic growth?

Gilad Brand
A multi-year fellow, Gilad interned in the Strategic Planning Division of the Ministry of Economy and in  the President's Office, where he was assigned to the president's economic advisor. Over the course of the year, Brand conducted an empirical study of the Israeli...
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