There is growing recognition that the growing productivity gap in Israel threatens future growth. Since 1970 and worsening last year, the gap between Israel’s productivity and the productivity of the G7 countries has steadily widened. Israel’s capital formation is at the low end of OECD countries. The Bank of Israel has reported that low productivity is related to relative low investment rates in the Israeli economy resulting in the average Israeli worker having relatively low productive capital to utilize compared to workers in OECD countries.
Israel’s current productivity stands at 76% of the average labor productivity among OECD countries. Without changes in dismal standards of labor productivity performance and increases in capital investment, continued increases in income inequality and lack of job creation for a growing share of the educated workforce will challenge national economic security.
A panel of key policy and research experts will respond and discuss key findings of Milken Institute Fellows’ research over the past year to address these important challenges and these questions:
Why are increases in educational attainment not translated into an increase in output per work?
Why is education not leading to faster economic growth?
Why are the contribution of education to GDP and the standard of living declining?
How can we insure increase rates of return of investment in human capital-Israel’s most critical growth resource?
Are tax benefits encouraging capital investment working?
How can the educational system act as a socio-economic lever for growth?

Presenters:
Gilad Brand, President’s Office and Ministry of the Economy & Milken Institute Fellow - "Israel’s Growth Paradox: Declining Productivity and Returns to Human Capital"
Revital Bar, National Economic Council & Milken Institute Fellow - "Tax Incidence and Impact of the Law for Encouraging Capital Investment"
Assaf Amit, Ministry of Education & Milken Institute Fellow - "Israel’s Educational System as Socio-Economic Lever"
Respondents:
Eli Hurvitz, Executive Director, The Trump Foundation
Dr. Eyal Argov, Head of Macroeconomic Unit, Research Department, Bank of Israel Julia Eitan Deputy, Deputy Director, National Economic Council
Tal Keinan, Chairman and CEO, KCPS Clarity

Moderator: Prof. Glenn Yago, Senior Director/Senior Fellow, Milken Institute