In Israel, about one-quarter of families with young children live in poverty, primarily in the Arab and Haredi sectors. Despite increased expenditure on daycare center subsidies for working parents and children-at-risk over the last decade, the rate of enrollment in early childhood frameworks in the Arab sector is only 18%. Moreover, long-term participation in early children frameworks in Israel does not improve the future achievements of elementary school students, which may stem from the low quality of these frameworks in Israel. In addition, many Arab mothers do not send their children to these frameworks due to the high cost relative to their wages.
With the establishment of a new government and the debate over whether to leave the responsibility for early childhood with the Ministry of Education or to return it to the Ministry of Economy and Industry, the Taub Center has published a unique booklet of data that paints a complicated picture of early childhood in Israel: The data indicate major differences between Jews and Arabs in enrollment rates in ECEC frameworks from birth to age 3, and more than anything else, the much higher rates of poverty among children in Israel, primarily among young Arab and Haredi children. The Taub Center researchers have also proposed policy options to deal with this complex situation. The booklet was produced as part of the Taub Center Initiative on Early Childhood Development and Inequality, which is supported by the Bernard van Leer Foundation, the Beracha Foundation, and Yad Hanadiv.
Poverty rates among children in Israel (ages 0-17) are the highest among the OECD countries
- According to OECD data, the rate of relative poverty in Israel among children from birth to 17 was 22% in 2019; the Taub Center findings show that the share of households with children up to the age of 4 living in poverty is even higher — one-quarter of these households live under the poverty line. The share of households with children of these ages that live under the poverty line is particularly high among Haredim (58%) and Arabs (55%) relative to non-Haredi Jews (8%).
- Students whose families were in the lower quintile of the income distribution during the first thousand days of their lives have lower achievements on the Grade 5 Meitzav exams, even after controlling for family income during later years. In contrast, a high family income during the first thousand days of life is positively correlated with high achievement in primary school. In other words, economic inequality during the first thousand days of life may partially explain the major disparities in academic achievement across socioeconomic groups in Israel, as evidenced by the results of the Meitzav exams and other exams such as PISA and PIRLS.
Expenditure on daycare centers rose but budgets are not being fully used
- The government expenditure on subsidizing the participation of children with working parents in supervised frameworks has almost doubled during the last decade — from NIS 660 million in 2009 to about NIS 1.3 billion in 2019. The expenditure on subsidizing children in daycare centers and family daycare based on the Law for Young Children at-Risk has also risen and stood at about NIS 416 million in 2019.
- Between 2014 and 2019, about NIS 1.17 billion was invested in the building of daycare centers for young children — about one-quarter of which was allocated to the Arab sector. However, the rate of budget utilization in the Arab sector is low (only about 50% vs 79% in Haredi local authorities and 61% in non-Haredi Jewish local authorities).
Participation rates in ECEC frameworks are low among children in Arab society
- Only 18% of children from birth to age 3 in Arab towns are cared for in supervised early childhood frameworks, as compared to 39% of Haredi children and 26% of non-Haredi Jewish children. Moreover, the low rate of employment among women in the Arab sector reduces the chances of their children participating in supervised frameworks since their participation or tuition subsidy is conditional on both parents working or studying.
- A large share of children in Arab towns enrolled in educational frameworks are accepted based on the Law for Children at-Risk — 41% as compared to 11% in non-Haredi Jewish local authorities and 8% in Haredi local authorities.
The return of mothers to work and the impact of their children’s enrollment in ECEC frameworks on their later academic achievements
- The rate of employment among mothers falls significantly after birth due to maternity leave, primarily among Jewish women who were working prior to their child’s birth. Among Arab women, the rate of employment is in general lower and therefore the drop in employment after birth is more moderate. Among fathers there is no real change after birth.
- In Arab society, the share of children from birth to age 3 who are enrolled in early childhood frameworks and whose mothers have an academic education is almost double that among children whose mothers do not have an academic education (67% vs 36%). Among Jews, the difference is small and the rate of enrollment in both groups is very high (93% vs 88%). For children ages 3 to 6, no relationship was found and enrollment is almost universal.
- During the last decade, the number of children enrolled in supervised early education and care frameworks, and primarily daycare centers, has grown by 34%. Nonetheless, a study by the Taub Center found that enrollment in a framework up to the age of three does no harm but does not contribute to the cognitive development of children in terms of reading achievement in Grade 4. This may be the result of the lower quality of these educational frameworks in Israel (due to the low education level of the educational staff and the high ratio between the number of children and the number of staff members).
- 54% of children with working parents in the Arab sector are eligible for high levels of subsidies in supervised frameworks, as compared to 89% among Haredim and 30% among non-Haredi Jews. Subsidy eligibility is primarily based on the level of income per capita in a household with young children. The income threshold of eligibility is much lower among Arabs and even lower among Haredim primarily due to their large number of children.
Taub Center proposals for policy options for early childhood in Israel
- Shifting of part of the child allowance from teenagers to infants: Instead of a universal child allowance, it is worth considering a differential allowance, such that families with young children will receive more and families with older children will receive less.
- A voucher program: A voucher program to supplement the nutrition of young children in low-income families and in order to provide them with a healthy diet, like programs that exist in the US. Apart from immediate economic assistance, such a program is likely to also have an impact on the cognitive development and academic achievements of children later in life.
- Creation of infrastructure for early childhood frameworks in Arab towns: Modification of the planning rules for building in crowded Arab towns and on private land; an increase in resources allocated to the planning and building of daycare centers; the addition of positions and the hiring and training of professional manpower. This program can be implemented as a joint project between the government and civil society organizations.
- Removal of barriers blocking access to supervised frameworks in the Arab sector: Implementation of a pilot program to assess whether canceling subsidies based on the mother’s employment and the adoption of a universal model can lead to an expansion of access to frameworks and even an increase in labor force participation rates among Arab women; revamping of the registration process to make it more accessible; adoption of a more flexible public transportation system with wider access among Arab towns.
- Reducing the fees for supervised frameworks in the Arab sector: Increasing subsidies so that fees do not exceed NIS 1,000; possibility of a short school day, which will also be suited to mothers working part-time; utilization of the unused portion of the tax benefit for parents in order to increase the direct subsidies to working mothers who do not reach the tax threshold to receive a subsidy; tax benefits for employers who finance childcare services for their workers.
- Increasing the work grant and the guaranteed income supplement: Increasing the work grants, primarily for working parents with young children, with the goal of encouraging labor force participation; increasing the guaranteed income supplement and uptake among poorer families through the use of “conditional transfer payments” (payments to families that are conditional on their participation in vocational training programs or a parenthood course).
The Taub Center for Social Policy Studies in Israel is an independent, non-partisan socioeconomic research institute. The Center provides decision makers and the public with research and findings on some of the most critical issues facing Israel in the areas of education, health, welfare, labor markets and economic policy in order to impact the decision-making process in Israel and to advance the well-being of all Israelis.
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