The Center for Economic Policy of the Haredi Society

The Aaron Institute has inaugurated The Center for Economic Policy of the Haredi Society, a research center dedicated to economic policy for the ultra-Orthodox (Haredi) community in Israel, in collaboration with The Haredi Institute for Public Affairs. The center aims to boost production and business economy within the Haredi society, fostering its integration into the national economy. An advisory board, comprising key figures from diverse fields within the Haredi community, will annually convene to shape the research plan based on current outcomes, accumulated knowledge, and assessments of primary barriers.

 

Aligned with Aaron Institute's broader economic strategy for Israel, the research center concentrates on influencing government decisions regarding the implementation of long-term economic policies for the Haredi society. Activities involve formulating strategies and policies addressing education, employment, infrastructure, and housing, in collaboration with government offices, especially the Ministry of Finance and the Prime Minister's Office. Policy recommendations provide detailed plans based on current Haredi population data, national and international economic knowledge, and an understanding of customs and cultural norms in Israel, including political constraints. The center leverages the expertise of The Haredi Institute for Public Affairs, offering profound insights into Haredi society.

 

Research findings and recommendations are disseminated through public roundtable discussions and conferences, engaging professionals from both Haredi and general society. Collaboration with government offices, particularly the Ministry of Finance, aims to extend the center's influence and translate proposals into government resolutions with allocated funds, facilitating the implementation of long-term policies.

 

Background: Challenges and Barriers to Integration of Haredi Society in Israeli Economy

 

The Haredi society in Israel is characterized by high poverty, relatively poor education, and a cloistered lifestyle. Haredi society constitutes about 10% of Israeli population, however its higher birth rate generates an annual increase rate of some 4%, while the general population increases by around 1.6%, thus the forecast by the Israel Central Bureau of Statistics presents dramatic projections regarding a strategic shift in the relative share of Haredi society in the general Israeli society over the next few decades. These shifts will have overarching economic implications for various aspects of life – including employment, housing, infrastructures, and education – which will affect the wider economy as well as the disparities therein.

 

Examining these issues, in the context of the relative position of the Israeli economy in the developed world, requires mapping the various barriers which exist in each of the main features of Haredi economy and society. In particular, there is an immediate and pressing need for a significant revision of economic policy, in order to initiate changes in the integration of Haredi society, both for its own benefit and that of the Israeli economy as a whole. A policy based on solutions which are adapted to the unique needs of the Haredi population, while keeping sight of the needs of the wider economy, would benefit the whole of Israeli society. It is important to note that the current crisis, caused by the COVID-19 pandemic and the public health policy measures it has necessitated, triggered a head-on collision between Haredi society and the state. These occurrences highlighted the need to formulate policies which would facilitate social and economic integration of the Haredi society in Israel, whereas public economic policy would act as a bridge connecting communities, rather than a source of unceasing conflicts which have been going on since the foundation of Israel. This necessitates the formulation of economic policies which are compatible with the cultural mores of Haredi society as well as the cultural mores of the Israeli state as a whole, with all its cultural and economic variety.

 

 

 

Contact

Dr. Hila Axelrad

hila.axelrad@idc.ac.il

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    Hila Axelrad and Tom Sadeh

    This paper investigates the economic incentives for ultra-Orthodox men to enter the workforce and evaluates the financial feasibility of their employment.

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    Hila Axelrad, Sarit Menahem-Carmi, Itschak Trachtengot and Tom Sadeh

    This paper delves into the economic analysis of the war's impact on Israel's economy, particularly examining how the macroeconomic shifts resonate within Haredi society. Through this exploration, it aims to shed light on the multifaceted implications of the ongoing war on the Haredi population.

  • ‏‏History and Haredi Sociology Meet the Israeli Economy

    Hila Axelrad and Itschak Trachtengot

    This study explores the impact of historical developments since the establishment of the State of Israel and sociological characteristics unique to ultra-Orthodox society on recent changes within the community and its relationship with the state. Additionally, it investigates the economic trends prevalent in recent years.

  • High-Quality Employment for Haredi Women

    Hila Axelrad, Idit Kalishe

    This study aims to examine the obstacles hindering the integration of ultra-Orthodox women into high-quality employment, with the ultimate goal of mitigating the wage gap between this demographic and non-Orthodox women.

  • Integration of Haredi Men in the High-Tech Sector

    Hila Axelrad and Sergei Sumkin

    This paper presents the current status of ultra-Orthodox men employed in high-tech and those who wish to integrate into high-tech and examines the possible ways to increase the number of Haredi men employed in high-tech.