The Israel 15 Vision requires leapfrogging Israel's socioeconomic performance. Following Denmark's example of tackling labor force flexibility could help Israel achieve this vision.
The Israel 15 Vision requires leapfrogging Israel's socioeconomic performance. A primary challenge in this context is Israel's labor force and particularly the low productivity of the low-tech sector, the low level of participation in the labor force and the lack of flexibility.
Denmark has tackled the issue of labor force flexibility through Flexicurity, a system that provides security for workers and flexibility for employers through a triangular deal:
- Government promises employees life-long learning and a welfare network so that they feel secure, but requires them to actively look for work.
- Employees promise employers labor-market flexibility - that is the ability to hire and fire at will.
- Employers promise the government a competitive market-place dedicated to growth by breaking up monopolies and allowing competition.
Denmark is among the ten most developed nations in terms of quality of life according to the Economist, slightly higher than the quality of life of the USA.
Blogidi expresses its gratitude to Gaddy Weissman, who heads the Reut Israel 15 Project team.
Gidi Grinstein is founder and president of the Reut Institute. The views expressed in this blog are his own and do not necessarily reflect the views of the Reut Institute.
For additional information regarding BloGidi see his original post: A Link in the Chain.