Israel's historical comparative advantage in the proportion of individuals with higher education degrees has eroded significantly over the years, marking a grim chapter in international comparisons. A periodic review published on Wednesday by the Chief Economist’s Headquarters at the Ministry of Finance reveals that in just two decades, Israel plummeted from a prestigious third place among OECD countries to only 20th place, a position currently below the average for the organization of developed nations.
According to data from the Chief Economist, in 2000 Israel ranked third in the OECD in the proportion of degree holders among those aged 25 to 34, which then stood at 41%. In 2024, although a moderate increase in the proportion of academics in Israel brought it to 47% in this age group, the country's relative standing eroded dramatically. While other member states in the organization recorded a significant surge, growth in Israel was far more moderate. The direct result is that Israel was pushed below the OECD average and fell to 20th place.
The Chief Economist’s Headquarters explains that the erosion of Israel’s relative standing is linked to two main factors. On one hand, the growth in education rates in Israel was slow and moderate compared with the pace recorded in other OECD countries. On the other hand, the country suffers from persistent, deep structural gaps in higher education integration rates among different population groups.
An analysis of the data by population group and gender paints a complex picture of the growth engines and barriers in Israeli higher education. While the female sector leads the growth, and between 2010 and 2025 a noticeable rise was recorded in higher education integration rates among women across all population groups, this trend is not uniform, and the gap relative to non-haredi Jewish women remains significant.
Among men, by contrast, recent years have shown a period of stagnation. The data point to stagnation in the proportion of non-haredi young Jewish men integrating into the higher education system. At the same time, among the haredi population, an increase in the integration rate has indeed been recorded, but this rate of growth is slower compared with that recorded among young Arabs.
The data demonstrate that the gaps in higher education integration rates among population groups remain significant. Without keeping pace with international growth and thoroughly addressing domestic structural gaps, Israel finds itself far behind in the education rankings of developed nations.