There are numerous problems that lead to the brain drain but the main one is the one that no government left or right can solve because its been this way from day 1 and that Is israelis work longer hours and for a fraction of the money they could be earning abroad for the same job. If you have skills then you can get a good job just about anywhere in the western world and they will pay you more money than you could ever dream about earning in Israel. Raise the minimum wage significantly and it will lead to unemployment whihch benefits nobody. Jobs that pay above minimum wage well their salary is a matter for them and the potential employer no legal obligations. My brother is a doctor he was considering alliyah but he decided against it because he just wasn't going to make the kind of money he believes he is worth after all the studying he has done, a nurse in the UK earns about the same as a doctor in Israel. If an Israeli can take his skills abroad for more money why not? The schools to begin with claass sizes are far to big mainly because of the illegals from Africa who kids get free schooling in Israel and of course the olim, both those groups put a big strain on the system.We want more and better schools we have to pay for it through higher taxes and nobody wants higher taxes and we cannot just say take it out the army budget because even the army budget is not so huge that it will fund all the things we want more money spent on. We have to decide whats the priority for us, schools or taxes. All the government can do is try to appeal to peoples sense of patriotism get those who left to come back and those considering leaving to stay. There is no way to stop this if we are going to allow alliyah & illegals to stay and of course you want to change the pay scale the only way to do it is by changing the entire economic system from the bottom up which is not at option so I really don't think there is a solution unless companies start paying less abroad so there is more incentive to stay here.
from the article: Israel has worst rate of brain drain in West, study shows