Taub Institute: Prolonged Reserve Duty May Lead to Persistent Wage Loss

A study by the Taub Institute shows that the average daily reserve duty pay decreased by about 30% in 2024, and that prolonged reserve service may lead to persistent wage loss, especially among those who served over 233 days since October 2023.

A study by the Taub Institute, published today (Thursday), warns that prolonged reserve duty may lead to persistent wage loss. According to the study, the average daily reserve pay dropped by about 30% in 2024, indicating a change in the composition of the mobilized population or a real-time impact on wages and employment. By the most conservative estimate, an average reservist who served at least 233 days since October 2023 is expected to lose nearly 5% of their salary. Among reservists who are fathers of children and served 290-320 days – over 100,000 people – the wage loss is expected to amount to about 6%. The study also refers to about 70,000 students who served in reserves in the 2024/25 academic year, when the rate of undergraduate students among Jews fell to its lowest point since 2018/19. A large gap in service duration between the center and periphery was also found: residents of border communities experience constant erosion and are mobilized continuously regardless of general combat trends. The researchers emphasize that prolonged absence of a large group from the labor market and academia could have national implications, including damage to the human capital of the Israeli economy in the long term.