{
  "title": "Israel: Selected Issues",
  "publication": "IMF Staff Country Reports, September 16, 2015",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/israel-selected-issues-43283",
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  "summary": "This Selected Issues paper examines labor productivity in Israel. Israel’s GDP per capita is low relative to the United States despite high labor input, as labor productivity is low.",
  "publishDate": "2015-09-16",
  "series": "IMF Staff Country Reports",
  "sections": [
    {
      "heading": "Summary and main findings",
      "content": "- The paper examines labor productivity in Israel.\n- Israel’s GDP per capita is low relative to the United States despite high labor input, as labor productivity is low.\n- Catch-up of labor productivity to the United States stopped in the 1980s and relative labor productivity has since declined.\n- Low labor productivity is the result of:\n  - a low capital-to-labor ratio—kept low by high employment growth, and\n  - low total factor productivity growth.\n- Low total factor productivity growth may reflect lack of competition and product market restrictions, which are among the highest in advanced economies."
    },
    {
      "heading": "Analysis of drivers",
      "content": "- Capital-to-labor ratio\n  - Characterized as low, constrained by high employment growth.\n- Total factor productivity (TFP)\n  - TFP growth described as low.\n  - Weak TFP growth is linked to structural features of product markets: lack of competition and high product-market restrictions.\n- Historical dynamics\n  - The period of catch-up in labor productivity relative to the United States ended in the 1980s; relative labor productivity declined since then."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Boost competition.\n- Lower product-market restrictions.\n- Improve the quality of education.\n- Improve infrastructure.\n- These measures are identified as would help boost productivity.\n\n---\n\n Content in this bundle\n\n- Cr15262 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/cr/issues/2016/12/31/israel-selected-issues-43283"
    }
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    "[Markdown version](/en/publications/cr/issues/2016/12/31/israel-selected-issues-43283/index.md)",
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    "Published: September 16, 2015",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513594675.002",
    "The paper examines labor productivity in Israel.",
    "Israel’s GDP per capita is low relative to the United States despite high labor input, as labor productivity is low.",
    "Catch-up of labor productivity to the United States stopped in the 1980s and relative labor productivity has since declined.",
    "Low labor productivity is the result of:",
    "Low total factor productivity growth may reflect lack of competition and product market restrictions, which are among the highest in advanced economies.",
    "Capital-to-labor ratio",
    "Total factor productivity (TFP)",
    "Historical dynamics",
    "Boost competition.",
    "Lower product-market restrictions.",
    "Improve the quality of education.",
    "Improve infrastructure.",
    "These measures are identified as would help boost productivity.",
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