Education and Employment in the Haredi Sector
Author: Eitan Regev
November 25, 2013
This chapter sheds new light on several central issues concerning the integration of Haredim in the labor market, and in particular the relationship between education and employment and wages in the Haredi sector.
A new and more precise method of identifying the Haredi population was developed, enabling a deeper analysis as well as a more comprehensive picture of employment and education patterns. The findings point to a significant positive effect of formal education on the employment rates and wage levels of Haredi men and women. Paradoxically, however, in recent decades there has been a gradual decline in formal education rates in this sector. An in-depth examination of the Haredi labor market reveals several irregularities concerning the supply and demand for manpower. Among Haredi men and women, there is both a considerable over-supply of manpower in the field of education and a lack of the tools and training that are necessary for integration in other fields. These trends coincided with a sharp rise in the rate of Haredi men studying in yeshivas, and in their average length of study. All of this indicates a gradual transition from the labor market to the world of Torah study. Entrenchment of these patterns makes the return to the labor market a significant challenge.
This paper appears in the Center’s annual publication State of the Nation Report – Society, Economy and Policy 2013.