The road to higher productivity

Michal Stein and Amit Ben Tzur
Jul 10, 2022

A report published by the Arlozorov Forum reveals that Israelis work more hours than almost any other developed country, and yet productivity in Israel is low. The solutions: raising the minimum wage and shortening the working week

A new report published by the Arlozorov Forum, the social and economic policy-making research institute established by the Histadrut, found that although Israelis work longer hours compared to almost every other developed country in the world, productivity in Israel is 20 percent lower than the OECD average.

According to the report, the multiple working hours of the average Israeli worker do not contribute at all to the Israeli economy, the opposite is true. So what can be done to increase productivity and strengthen our economy?
The solutions, according to the Arlozorov Forum, are:
First, work less – the data show that in countries where people work fewer hours, there is enough family time, time for hobbies, and personal development, and productivity is higher.
Second, raise the minimum wage. Whenever the minimum wage in Israel increased, employment was not harmed.

To sum up, shortening the work week and raising the minimum wage are good for workers and encourage employers to find more effective management strategies.

The report can be found here in Hebrew