The gender wage gap in Israel: evidence from PIAAC data

This article examines the gender wage gap in Israel – almost the highest gap among OECD countries in 2021. Using the PIAAC data to estimate wage equations and the wage gap, it shows that the main explanations for the gap are the difference in working hours between males and females, as well as differences in numeracy skills and the use of these skills at work. It concludes that public policy for narrowing the wage gap must include actions to encourage females to take full-time jobs and to encourage girls at school to take more advanced STEM courses.