Full coverage· Economy· Updated
Israel Provides Child Allowances to 1.3 Million Families, Impacting Work and Birth Rates
Israel supports 1.3 million families with child allowances and savings deposits, aiming to share child-rearing costs broadly. Research shows these payments influence parents' work participation and have a limited effect on birth rates, especially among certain groups.
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What happened
- 01Israel pays child allowances to 1.3 million families for 3.2 million children, plus monthly savings deposits.
- 02Families with more children receive higher total allowances, but per-child amounts decrease after the fourth child.
- 0328% of Israeli children live below the poverty line, highlighting the social need for child support.
- 04Past cuts to allowances increased labor participation among parents of large families, indicating work incentives matter.
- 05Child allowances modestly affect birth rates, mainly among Arab and ultra-Orthodox women, with little impact on others.
- 06The government aims to balance universal child support with targeted aid to low-income families to encourage work and income growth.
The government seeks to balance universal support with targeted aid to encourage employment and reduce poverty among children.
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