Israelis Work Hard but Not Well

Long hours on the job can’t make up for the fact that our productivity is low, which is why we have to subsidize exporters with tax breaks.

The public debate over tax benefits that the country grants to exporters under the Law for the Encouragement of Capital Investment touches on a particularly sensitive point: Just how much does Israel have to do to lure investors from overseas ‏(and at home, too‏) without tempting them with giant tax breaks?