Main points:
  • Over the past decade, the average basic skills of young employees, particularly men, in the public sector have declined relative to their counterparts in the business sector.
  • As of 2022, considering formal education and other characteristics, the average basic skills of young employees in Israel's public sector are significantly lower than those of their counterparts in the business sector. A decade ago, these disparities were not significant.
  • By international comparison, the skills of employees in Israel's public sector are lower than those of public sector employees in other countries.
  • One possible reason for the relative decline in basic skill levels among public sector employees in Israel is the erosion of their relative wages. In recent years, wages in the public sector have diminished compared to those in the business sector, even among high earners.

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