Report: Better-educated Israelis earn better money

Better-educated Israelis are doing better than their peers in other developed countries, an OECD report says.

Moshe Cohen,

University Students
University Students
Israel news photo: Flash 90

Educated people generally make more money than uneducated ones, but in Israel the gap between earnings for college graduates and those who did not attend college is the greatest among OECD countries. In all the other 35 countries that are members of or observers in the Organization for Economic Development, which compiles data on the economies of the world's advanced countries, the average college graduate can expect to earn 160% more than non-grads over their careers; in Israel that figure is 163%.

The report discussed educational trends in Israel and other OECD countries in the past decade.

More college graduates work in Israel than in other OECD countries as well. 85% of college graduates in Israel participate in the workforce, compared to 83% on average in other countries. Fortunately for Israelis, more of them are college graduates than in other countries as well. In Israel, nearly 50% of those in the workforce were college graduates, compared to 36% on average in other OECD countries.

One interesting statistic relates to the age of college graduates in Israel. Since 2005, there has been a greater increase in the number of college graduates for Israelis between the ages 55-64, than for those in the 25-34 range. According to Israeli experts, the reason for that is the later age at which Israelis on average enter the education system, with most serving three years or more in the IDF prior to college.

Commenting on the OECD report, the Finance Ministry said that “the numbers of college graduates in Israel continues to increase, although at a slower pace than in the past. Over the past decade we have seen Israel close the gap in higher education with other OECD countries.”