The Socioeconomic Situation of Young Adults in Israel

This chapter examines the developments in the socioeconomic characteristics of young adults ages 18-34 in Israel since 1995, with breakdowns by age groups and personal attributes. In the areas of higher education and employment, the share of students and academic degree holders has grown considerably since the 1990s, commensurate with the opening of many colleges. The age at which individuals begin their academic studies has been delayed, and the majority of students are concentrated in the 23-26 age group. The employment rates of the youngest age group have declined, while there has been a sharp increase in the rate of those employed in part-time jobs among individuals of this age group. In contrast, the rate of Jewish student employment has risen, with students mainly employed in clerical, sales and service jobs. There has also been an increase in the relatively low-paid service jobs among individuals in the 31-34-year-old age group who do not have an academic education. Among those with an academic education of the same age, there has been a decline in wages relative to older academics, even though younger academics are employed in the same professions and working the same number of hours. In the area of housing, a rise was found in the share of young adults living with their parents, particularly since the beginning of the housing crisis. Home ownership rates among young adults have dropped, due in part to older ages at marriage. For those ages 25-30, the decline has likely occurred because of changing social preferences, while among ages 31-34, the rising cost of housing was no doubt also a factor.

This paper appears as a chapter in the Center’s annual publication, State of the Nation Report 2015, Dov Chernichovsky and Avi Weiss (editors).