Dr. Sagit Azari-Weisel and Gal Lifshitz from the Institute for Structural Reforms studied gender inequality in Israel’s labor market. Their research shows that while women's status has improved significantly since the 1950s, substantial gaps between men and women persist.
Israel currently ranks second among OECD countries in terms of gender pay gaps. Two primary factors explain this disparity. The first is occupational segregation—men and women tend to work in different professions, and some of those professions command higher wages.
The second factor is the difference in working hours. In 2022, 68.3% of employed women worked full-time, compared to 86.3% of men. Even in 2024, many women face "underemployment"—including involuntary part-time work, unemployment, or roles that do not match their skills. This often stems from household and family responsibilities.
The recent Gaza War further highlighted these challenges. During the conflict, women were slightly more likely than men to miss work (51% vs. 49%), even though only 2.7% of women were called for military reserve duty (compared to 21.7% of men). Notably, 44% of women's absences were for undefined reasons, which typically are not compensated by employers, can be perceived as illegitimate, and may even lead to job loss.
Moreover, the war exposed a geographic dimension to gender inequality. The study found that in Israel’s southern region, the hourly gender pay gap is the highest—26%, compared to a national gap of 23%. This is partly because women in the southern region often work locally, where wages are lower, while men tend to commute to central Israel, where pay is higher. The closure of many workplaces in the southern region due to the conflict, while jobs in central Israel remain largely unaffected, is expected to further harm women’s earning potential and economic independence.
Gender inequality in the labor market is not just a women’s issue—it affects the entire Israeli economy, limiting productivity and growth potential. One of Israel's key growth engines is the high-tech sector and the rapid expansion of artificial intelligence. Dr. Cohen Raviv and Omer Manor from the Institute warn that the rise of AI may further widen gender gaps in the coming years, especially due to the existing occupational segregation in tech-related fields.