Israel Bank concerns: Students effected by the Corona crisis will be harmed in the labor market

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by Ifi Reporter Category:Financial Apr 4, 2021

A review published by the Bank of Israel raises significant concerns, which have been mentioned many times, most notably harm to students' entry into the labor market, which has implications beyond the level of the individual at the macroeconomic level as well.
While the dispute between the Ministry of Health and the Ministry of Education over the cancellation of the capsules and a return to a full routine on its way to resolving them, the Bank of Israel also expresses support and reviews in another chapter revealed from its annual report the impact of steps taken on education in Israel.
It will be recalled, therefore, that the changes in the outline of operating the education system stemmed from the Ministry of Health's approach to the question of the contribution of meetings between students, with each other and with teachers, to morbidity in Israel. The document states that "due to the negative effects of the closure of the education system, many countries have moved to an approach of academic continuity while avoiding as much as possible disruption of frontal studies in schools. While Israeli students have suffered considerable disruption, some countries have managed to minimize harm."
The Bank of Israel enumerates various solutions proposed by experts in the field of education and implemented in some of them in OECD countries, and they are reducing the size of the classes through the use of public spaces, reducing student hours, and the "second shift outline".
According to the document, in both Hebrew and Arab education, the dropout rate increased by two percentage points in the transition between grade levels.
 The Bank relies on past events such as the cessation of learning during the Yom Kippur War due to the stabilization of the reserve teachers and the great teachers' strike of 1978, and writes that the average education, except for the ultra-Orthodox, decreased in both cases. In '78, for example). Therefore, the bank writes that past events show that a disruption in studies was coordinated with a long-term harm to students' education.
Also controversial is the controversial effectiveness, according to studies, of distance learning in routine, when in contrast to cases that showed improvement in achievement, the Israeli, in which the "distance frontal learning" approach was taken, was perceived as less effective than frontal learning in the classroom.
 The Bank of Israel assumes that the transition to this method in a period like the Corona crisis was even less effective. Mention is also made of the gaps in the possibility of distance learning, ie owning a computer at home and connecting to an Internet network, and moreover the assistance from the parents in operating the system and help from private teachers. Thus, it is written that a child from a weak background may lose due to the disruption in the past year knowledge equivalent to 1.2 years of schooling, while students from a strong background will not be harmed at all.
The Bank of Israel also cites a study (Haushek & Woessmann, 2020) according to which a loss of education equal to a quarter to two-thirds of a school year is expected to reduce future student income by 2-5%. Eventually, between March 20 and March 21, schools were physically closed and operated in the form of distance learning between 40-90% of the time (depending on the class). To what extent is the aforementioned income injury relevant to the Israeli case? This therefore depends on the level of impairment in education, which is already a consequence of the effectiveness of distance learning in the period.
It is worth noting that a move has been made to distribute computers and connect to the Internet for populations absent from this infrastructure. Still, this does not seem to be satisfactory, as the Bank of Israel is once again calling for improved students' access to remote connection infrastructure and training of teaching staff (who report the need for it) and the adjustment of study materials. In addition, in order to reduce the harm to students, it was recommended to promote arrangements with teachers' organizations regarding the vacation days before the school breaks, and to focus on strata that are at risk of dropping out (ninth grades in particular) when making decisions.

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