July 2010 Bulletin
In this issue…
The process of economic growth greatly increases the demand for educated and skilled workers. This has a substantial and increasingly negative impact on the incomes and the employment chances of the less educated.
Contrary to conventional wisdom, the underlying reason for Israel’s high rates of poverty and inequality and low rates of economic growth over the last several decades is not due to insufficient government budgets but to the underlying national priorities that determined how those budgets were allocated and spent.
Israel’s minimum wage is among the highest in the West, but lawmakers want to raise it further. On the other hand, the country’s negative income tax is very low compared to the United States.