How s Life in Israel?

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October 2015 How s Life in Israel? Additional information, including the data used in this country note, can be found at: www.oecd.org/statistics/hows-life-2015-country-notes-data.xlsx

HOW S LIFE IN ISRAEL IN 2015? Israel s performance across the different well-being dimensions is very mixed. Average earnings lie below the OECD average, and 16% of employees regularly work very long hours compared to the OECD average of 12.5%. However, at 1.3%, the long-term unemployment rate in Israel is substantially below the OECD average (2.6%), and life satisfaction in Israel is comparatively high. In Israel, only 68.4% of the population is satisfied with their local water quality, one of the lowest shares in the OECD. Air quality (measured as average exposure to PM 2.5 air pollution) is also among the worst in the OECD. Average life expectancy in Israel stands at 82.1, above the OECD average (79.9 years), and 80% of adults perceive their health as good or better than good, while this share is only 68.8% in the OECD on average. Israel ranks towards the bottom of the OECD in terms of personal safety. Current well-being in Israel SUBJECTIVE WELL-BEING INCOME AND WEALTH PERSONAL SECURITY Life satisfaction Selfreported victimisation Deaths due to assault Financial wealth Employment Earnings Job security JOBS AND EARNINGS CIVIC ENGAGEMENT AND GOVERNANCE Voter turnout Long-term unemployment SOCIAL CONNECTIONS EDUCATION AND SKILLS Social support Cognitive skills Educational attainment Perceived health HEALTH STATUS Life expectancy Air quality Water quality Working hours Rooms per person ENVIRONMENTAL QUALITY WORK-LIFE BALANCE HOUSING Israel This chart shows areas of well-being strengths and weaknesses in Israel, based on a ranking of all OECD countries. Longer lines show areas of relative strength, while shorter lines show areas of relative weakness. For more details, see www.oecd.org/statistics/hows-life-2015-country-notesdata.xlsx. Resources for future well-being in Israel Beyond measuring well-being today, How s Life? 2015 looks at some of the resources (or capital stocks ) that will shape people s well-being in the future. These include aspects of natural capital, human capital, social capital and economic capital. For example, human capital refers to the skills, competencies and health status of individuals. The educational attainment of young adults is one indicator of the skills that are carried forward to the future. The share of Israelis aged 25-34 attaining at least upper secondary education increased from 85.4% in 2007 to 90.7% in 2013. This share lies above the OECD average of 83.6%. 2

HOW S LIFE FOR CHILDREN IN ISRAEL? Giving children a good start in life is important both for well-being today, and in the future. Israel has the highest level of child income poverty in the OECD: 28.5% of Israeli children live in a household with a disposable income of less than half of the Israeli median income. Since 2007, Israel has seen improvements in the rate of infant mortality and low birth weights, as well as teenage birth rates. Nonetheless, Israel s rate of low birth weights still lies above the OECD average. Israel has a relatively low adolescent suicide rate: while in the OECD on average around 6 in every 100 000 children aged 15 to 19 take their own lives every year, it is less than 3 in every 100 000 children in the case of Israel. Child well-being in Israel Ranking of Israel compared to other OECD countries top third middle third bottom third Income Disposable income of households with children and Wealth Child income poverty Infant mortality Low birth weight Health status Adolescent suicide rate Teenage birth rate Education and Skills Social and family environment Personal security Reading skills among 15 year olds (PISA) Creative problem solving among 15 year olds (PISA) Youth neither in employment nor education/training Educational deprivation Sense of belonging in school at 15 years old (PISA) Child homicide rate The reading and creative problem-solving skills of Israeli students lie below the OECD average level. The share of Israeli teenagers who are not in employment, education or training is 9.1%, which lies above the OECD average of 7.1%. Israeli students feel a relatively high sense of belonging in school. slightly below the OECD average. The Israeli child homicide rate lies Inequalities in child well-being Across all OECD countries there are large inequalities in child well-being. Children from wealthier households enjoy both better material living conditions, and a higher quality of life, on average. In Israel, on average, children from high socio-economic backgrounds show higher creative problem-solving skills than children from low socio-economic backgrounds. Furthermore, there are wide differences in educational deprivation between children from high and low socio-economic backgrounds in Israel. Inequalities in creative problem-solving skills Average computer problem-solving scores of 15 year-olds (PISA) Inequalities in educational deprivation Number of 15-year olds (per 1000) reporting having less than four of seven educational items* 550 508 537 10 8.1 9.5 500 450 468 5 400 350 401 Israel OECD 0 0.2 0.6 Israel OECD High socio-economic status Low socio-economic status National average * For more information (including definitions), see www.oecd.org/statistics/hows-life-2015-country-notes-data.xlsx. 3

THE VALUE OF GIVING: VOLUNTEERING AND WELL-BEING Volunteering makes an important hidden contribution to well-being, producing goods and services that are not captured by conventional economic statistics. When you add up the value of the time people spend on volunteering in OECD countries, it amounts to roughly 2% of GDP per year. Volunteering in Israel and the OECD 13.9% of older Israelis (aged 50 and over) report that they volunteered through an organisation (termed formal volunteering ) during the past 12 months. The share lies below the OECD average of 16.5%. How often do people volunteer? 43.3% of older Israelis who participate in formal volunteering do so almost weekly. The share of formal volunteers who volunteer almost daily is 16.5% and lies above the OECD average of 13.8%. Why do people volunteer? In the case of Israel, 70.5% of older volunteers state that they participate in volunteering activities in order to contribute something useful, while 23.5% do so because it enables them to meet other people. These motivations are similar to those of older volunteers in other OECD countries. Who volunteers? Across the OECD area, people with a university degree are more likely to participate in formal volunteering than those with lower levels of education. Similarly, people who are in employment are more likely to volunteer than those who are unemployed. Participation in formal volunteering also increases with people s level of household income. Why do people in Israel volunteer formally? Motivations to volunteer among people aged 50 and over Because I'm needed Who volunteers in the OECD? Percentage of the working-age population reporting that they volunteered through an organisation during the past 12 months Meet other people 24% 6% Contribute something useful 50.0% 40.0% 30.0% 20.0% 71% 10.0% 0.0% Primary Tertiary Education level Unemployed Full-time employed Employment status Lower Middle Higher Household income OECD average Volunteering brings benefits for volunteers themselves, as well as for the people and communities they help. For example, people who engage in volunteering are more likely to have higher literacy, numeracy and problem-solving skills and receive higher wages, on average, relative to non-volunteers. In OECD countries, older people who volunteer formally are more likely to report a better health status than non-volunteers. Furthermore, formal volunteers in the OECD, on average, also report higher life satisfaction than non-volunteers. 4

GOING LOCAL: MEASURING WELL-BEING IN REGIONS Where people live has an important impact on their opportunities to live well. There can be large differences in average levels of well-being in different regions within the same country. How s Life in your Region? and the OECD regional well-being web-tool assess performance across 9 dimensions of well-being in the 362 OECD large regions 6 of which are in Israel. Drawing on this work, How s Life? 2015 includes a special focus on measuring well-being in regions. Regional well-being in Israel Performance of Israeli regions across selected well-being indicators relative to the other OECD regions 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Ranking of OECD regions bottom 20% middle 60% top 20% 1 Tel Aviv District Central District Central District Northern District Central District Northern District Tel Aviv District Central District Jerusalem District Northern District Jerusalem District Southern District Level of household Relative Unemployment Educational Air quality Broadband income poverty attainment connection Income Income Income Jobs Education Environment Access Access to services to * For more information (including data for other regions), see www.oecd.org/statistics/hows-life-2015-country-notes-data.xlsx. Regional gaps in material living conditions Compared to other OECD countries regional inequalities in income are relatively large in Israel: the average household adjusted disposable income in Tel Aviv District is almost double that in the Northern District. Regarding relative income poverty, while 10.5% of people in the Central District have an income of less than half of the Israeli median income, the share is 38.6% in Jerusalem District. Unemployment rates range from 5.1% in the Central District to 8.1% in the Northern District. This gap (3 percentage points) is smaller than the regional differences observed in most other OECD countries. Regional differences in people s quality of life Regarding educational attainment, 90.7% of the labour force has at least a secondary education in the Central District, while this share is 83.4% in the Northern District. This gap (7.3 percentage points) is smaller than the regional differences in educational attainment in many other OECD countries. Equally, the regional variation in air quality is rather small in Israel. The share of households with a broadband connection ranges from 77.7% in Tel Aviv District to only 53.1% in Jerusalem District. μg/m 3 25 20 15 10 5 0 Regional disparities in air pollution Regions with the lowest and highest average exposure to PM 2.5 levels Southern District Central District Turkey Greece Israel Australia Max Country average Min 5

BETTER LIFE INDEX The Better Life Index is an interactive web application that invites citizens to compare well-being across OECD countries and beyond on the basis of the set of well-being indicators explored in How s Life?. Users chose what weight to give to each of the eleven dimensions shown below and then see how countries perform, based on their own personal priorities in life. Users can also share their index with other people in their networks, as well as with the OECD. This allows the OECD to gather valuable information on the importance that users attach to various life dimensions, on how these preferences differ across countries, and on the demographic characteristics of users. WHAT MATTERS MOST TO PEOPLE IN ISRAEL? Since its launch in May 2011, the Better Life Index has attracted over seven million visits from just about every country on the planet and has received over 15 million page views. To date, over 56,000 people in Israel have visited the website making Israel the 30th country overall in traffic to the website. The top cities are Tel Aviv-Yafo (68% of visits), Jerusalem, Haifa and Ramat Gan. The following country findings reflect the ratings voluntarily shared by 650 website visitors in Israel. Findings are only indicative and are not representative of the population at large. For Israeli users of the Better Life Index, education, health and life satisfaction are the three most important topics (shown below). 1 Up to date information, including a breakdown of participants in each country by gender and age can be found here: www.oecdbetterlifeindex.org/responses/#isr. 13% 12% 11% 10% 9% 8% 7% 6% 5% 6.5% 7.7% 8.1% 8.7% 8.9% 9.0% 9.2% 9.5% 10.3% 10.6% 12.3% 1 User information for Israel is based on shared indexes submitted between May 2011 and April 2015. 6

The OECD Better Life Initiative, launched in 2011, focuses on the aspects of life that matter to people and that shape the quality of their lives. The Initiative comprises a set of regularly updated well-being indicators and an in-depth analysis of specific topics, published in the How s Life? report. It also includes an interactive web application, the Better Life Index, and a number of methodological and research projects to improve the information base towards a better understanding of well-being trends and their drivers. The OECD Better Life Initiative: Helps to inform policy making to improve quality of life. Connects policies to people s lives. Generates support for needed policy measures. Improves civic engagement by encouraging the public to create their own Better Life Index and share their preferences about what matters most for well-being Empowers the public by improving their understanding of policy-making. This brochure presents selected findings for Israel from the How s Life? report (pages 2-5) and shows what Israeli users of the Better Life Index are telling us about their well-being priorities (page 6). A supporting Excel file with the data underlying the graphs shown in this note and further information is available here: www.oecd.org/statistics/hows-life-2015-country-notes-data.xlsx. HOW S LIFE? How s Life?, published every two years, provides a comprehensive picture of well-being in OECD countries and other major economies by bringing together an internationally comparable set of well-being indicators that the OECD considers as essential to a good life. It looks at people s material conditions and quality of life across the population in eleven dimensions including: income and wealth; jobs and earnings; housing; health status; work-life balance; education and skills; social connections; civic engagement and governance; environmental quality; personal security; and subjective well-being. The How s Life? 2015 report includes for the first time a set of indicators to measure the stocks of resources that help to support well-being over time. The report also contains three special chapters focusing on child well-being, volunteering and regional well-being. 7

For media requests contact: news.contact@oecd.org or +33 1 45 24 97 00 For more information contact: carrie.exton@oecd.org or +33 1 45 24 88 28 romina.boarini@oecd.org or +33 1 45 24 92 91 8