RETURNS TO EDUCATION AND THE UNEMPLOYMENT RISKS: THE CASE STUDY OF THE STATE OF ISRAEL

Abstract

Many findings in the economics of education has shown that investment in education continues to be a very attractive investment opportunity in the world today - both from the private and the social point of view. It is the same with Israel. This paper examines a number of education-related aspects of Israeli labor market in the year of 2008 using 3973 samples from the Central Bureau of Statistics of Israel. The paper estimates the returns to education in terms of Jewish and Arab, male and female and compares the differences of the unemployment Risks incidence due to the different gender and ethnicity. The findings indicate that the more year of receiving education, the higher education return in Israel. But the returns to education are very different between male and female, Jewish and Arab groups. The analysis also shows that there exist a great relationship between education level and unemployment risks which the incidence is significant in most cases. Just like the other countries, investment in education continues to be a very attractive investment opportunity in Israel today and in the future.