TAUB CENTER
for Social Policy Studies in Israel
Rehov Ha’ari 15, POB 3489, Jerusalem
Tel: 02-567-1818
Fax: 02-567-1919
info@taubcenter.org.il
Press Release
Study math and succeed: A new study by the Taub Center shows that
studying math in high school has a direct effect on labor market
achievements
A new Taub Center research study, conducted by Prof. Ayal Kimhi and Arik Horovitz,
is the first of its kind to quantify the effect of high school math on labor force
achievements – employment rates and wage levels. The study answers questions like:
Does the level of math studied in high school have an effect later in life? Is it worth
making the effort to study higher-level math or is a lower level sufficient? What is the
role of natural learning skills in the entire picture?
To this end, a unique data base was constructed that followed a group from bagrut
[matriculation] exams, through higher education and to the beginnings of their career
paths (age 29). The research was funded in partnership with the Trump Foundation.
Studying math at a higher level could lead to narrowing gaps between men
and women
The Taub Center study found that gender affected the level of math studied; 44% of
women took 3-4 units of math as opposed to 33% of men. In contrast, 10% of men took
their bagrut exams at the 5 unit level, as opposed to 7% of women.
When comparing genders, significant differences were found. First, among those who
took 4 units of math, the share of women with an academic degree is significantly
greater than the share of men with an academic degree. Nonetheless, in those areas of
study that lead to professions with higher wage levels – like economics and business
administration, the exact sciences and computer sciences – the majority of
matriculating students are men. It was also found that increasing the level of study for
those who did 4 units of math (using a hypothetical formulation) to 5 units significantly
increases the likelihood of their completing an academic degree, especially among
women, and also had an effect on their choice of a field of study. The most notable
differences are a reduction in the tendency to study social sciences and an increased
tendency to study medicine, economics, business administration, exact sciences, and
computer sciences. In particular, the frequency of studying computer sciences increased
by half among men and more than three times among women. The frequency of
studying economics and business administration went up only slightly for men but
increased significantly among women. As a rule, moving from 4 to 5 units of math
enables entrance into fields of study that result in higher wage levels later. The impact
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is greater for women then for men, and so this move narrows the gender gaps in the
distribution of academic fields of study.
The effect of academic field of study on wages differs substantially for men and
women. Men with an academic degree in Jewish studies, social sciences and law earn
(per hour) less than those without an academic degree, while men with a degree in
education, medicine and life sciences, economics and business do not earn more than
those without a degree. Among women, though, a degree in Jewish studies, humanities,
education, medicine and life sciences, social sciences, and primarily economics and
business means higher salaries relative to those without a degree. A degree in
engineering and the exact sciences or in computer sciences contributes significantly to
the wage level for both men and women, although its contribution is greater for women.
Kimhi and Horovitz found that there is also importance to nationality, and apparently
the opportunity to study math at a higher level is not equally accessible to all – the
number of Jews studying math at a higher level is substantially higher than the number
of Arab Israelis or any other minority group. Among Christians and Druze there is a
greater tendency to study math at a higher level than among Muslims or other minority
groups.
Substantial income differences between those who test at the 3, 4 and 5 unit
level
The Taub Center study found that for those completing 5 units of math, monthly
income and hourly wage were double the monthly income and hourly wages of those
who did not take math at all. Income increased with the level of math studied even
when comparing students who received the same score on the bagrut exams, and this
fact is especially pronounced in the move from 4 units to 5 units of study. Beyond this,
the higher the matriculation score in math, the higher the income level, and this was
especially true in the move from a score of 81-90 to a score in the 91-100 range. For
example, when the income levels of those who took 5 units of study were examined,
the largest gap found was between those who scored between 81-90, and earned NIS 56
per hour, and those who earned NIS 78 per hour and scored between 91-100. That is,
income is closely correlated with the level of math studies and the bagrut score.
It was also found that academic degrees that are considered prestigious are worth
more in the labor market. Computer science degree holders earn 77% more than
those without an academic degree, 90% more than those with a degree in Jewish
studies or the humanities, and 40% more than the next group in the degree
ranking – graduates of engineering and the exact sciences. On the other hand, there
is no significant income gap between graduates of universities and graduates of
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colleges. Moreover, in certain fields, those without an academic degree earn more than
those with a degree - primarily among those with a higher level of math. For example,
for those who have studied 3 or more units of math, the wages of someone without a
degree are higher than those of someone with a degree in the social sciences.
In addition, Kimhi and Horovitz found that the higher the number of units of math
studied, the more likely the individual is to be employed in a more prestigious
profession (Figure 1). The rate of academic professionals rose from 4% among those
who took the exam at less than a 3 unit level to 49% among those who studied at the 5
unit level. An interesting finding is that the rate of managers does not change
significantly in the move from 3 to 5 units of study.
Figure 1
Distribution of professions for each level of math study*
Managers
Academic professionals
Associate professionals,
technicians
Clerical workers
Agents, sales
and service workers
Skilled workers**
Unskilled workers
Doesn’t work/
profession unknown
0-1 unit
3 units
4 units
5 units
* Bars without any value noted are 1% or less
** Agriculture, manufacturing, construction and other sectors
Source: Ayal Kimhi and Arik Horovitz, Taub Center
Data: Central Bureau of Statistics
Kimhi explains: “Studying math at a higher level makes it possible to be accepted to a
more prestigious academic study track, which leads to higher level employment and
higher wages. In essence, the importance of learning higher level math is two-fold.
First, it directly contributes to the students’ skill level, and second, the very fact that
these students have chosen to study math at a higher level indicates their increased
capabilities and motivation. We can assume that these two factors help students gain
acceptance to prestigious university departments, and at a later stage, also increases
their ability to earn more in the labor market.”
The study also found a relationship between the number of units of math studied and
the area of academic study (Figure 2). Among those who studied 5 units of math there
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is a higher rate of graduates in computer science, engineering and the exact sciences,
while among those who studied 3 and 4 units there is a higher rate of degree holders in
the social sciences, arts and humanities. Holding a degree in computer sciences raises
one’s income considerably, but degrees in engineering and the exact sciences, as well
as degrees in economics and business, also have a positive contribution – they are all
more common among those who have studied math at a higher level.
Figure 2
Distribution of academic study areas for each level of math study*
Computer sciences
Engineering and exact
sciences
Economics and business
administration
Law
Social sciences
Medicine and life sciences
Humanities and the arts
No degree**
0-1 unit
3 units
4 units
5 units
* Bars without any value noted are 1% or less
** Students are included in the category “No degree”
Source: Ayal Kimhi and Arik Horovitz, Taub Center
Data: Central Bureau of Statistics
The Taub Center’s research study found that studying 5 units of math is also
directly positively correlated with income (that is, statistically controlling for
various variables), especially among women. In order to examine the effect of
different variables, the researchers controlled for a variety of socioeconomic
characteristics: gender, religion, family status, children, homeownership, father and
mother’s country of origin, immigrant status, and area of residence. In addition, they
took into consideration other bagrut scores that could indicate learning skills and
intelligence. Even after all of these variables were taken into consideration, a
theoretical scenario analysis showed that moving a student from 4 to 5 units of math
study (without a change in his bagrut score) could increase wages by 10% - of this 6%
is the direct effect and 4% is due to increased income from the fields of study
characteristic of someone learning 5 units of math (primarily computer sciences). The
direct effect means that even when the other variables are statistically removed,
including the field of academic study, the economic employment sector and profession,
differences in income remain to some degree between those examined. Even in this
situation the results differed between men and women; while the direct effect is 6% for
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both men and women, the indirect effect through field of study is 3% for men and 5%
for women, which reflects the greater impact of higher level math study on women’s
choice of academic field of study. All in all, the effect of moving from 4 to 5 units of
math increases the wages of men by 9% and those of women by 11%.
The main conclusion that arises from the study is that the level of math study is of great
importance for labor market achievements, including employment rates and income
level, and academic field plays a considerable role in this. Studying math at a higher
level enables acceptance to more prestigious academic departments like engineering,
sciences and computing, and this in turn, has an impact on finding quality employment
at higher wage levels.
A decline in the number of those testing at the 5 unit level – a national
challenge
Despite the knowledge that math study influences academic studies, there is a
continuous decline in the rate of those taking the bagrut exams at the higher math
levels – from 20% to some 13% of all examinees between 2006 and 2011. In a recent
Taub Center study, Senior Researcher Nachum Blass wrote that a possible reason is the
strengthening of the approach that judges a school by its bagrut certification rate, which
in turn greatly influences the administrative policy of schools and teachers, and the
strengthening of the functional approach to the bagrut certification, that places greater
emphasis on the overall average score. Teachers and students make a calculation of
what is preferable: a relatively high score on a lower level test or a lower score on a
higher level test (say, more units of math), and in this way, both students and schools
have come to the conclusion that testing at a lower level is preferable.
In contrast to what is commonly believed, though, the researchers found that there is a
positive correlation between the test score and the number of units of study; that is, the
test score is higher, on average, as the number of units of study is higher (Figure 3).
Thus, the fear of a lower score when testing at a higher level of study is not necessarily
justified.
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Figure 3
Distribution of bagrut scores in math for each level of math study
-
Less than 60
3 units
4 units
5 units
Source: Ayal Kimhi and Arik Horovitz, Taub Center
Data: Central Bureau of Statistics
Moreover, when testing the scenario in which the math study level was increased from
4 to 5 units while the bagrut score was simultaneously reduced by 10 points, it was
seen that the reduction in the score decreased the effect of raising the level of study, but
did not negate it completely: the average increase in wages in this case was 7% versus
10% if the score remained the same.
In Kimhi’s words: “On the national level, this decline [in students taking the highest
level math exam] is cause for concern regarding Israel’s ability to rely on the elite
technology sector as an engine for economic market growth.” In order to deal with this
decline, the researchers suggest a variety of solutions. First, find a way to make math
studies more attractive and less threatening by improving the quality of teaching – not
only at the high school level, but also later on. Second, increase awareness among
students and their families of the importance of math studies by explaining and
familiarizing them with academic institutions and the business sector. Third, offer
economic incentives to schools to increase the share of students that take bagrut exams
in math at the higher levels. Kimhi adds: “It is appropriate to finance the
implementation of these solutions differentially, so that increasing math studies will
become a central tool in narrowing socioeconomic gaps.”
The Taub Center for Social Policy Studies in Israel is an independent, non-partisan
institution for socioeconomic research based in Jerusalem. The Center provides
decision makers, as well as the public in general, with a big picture perspective on
economic and social areas. The Center’s interdisciplinary Policy Programs –
comprising leading academic and policy making experts – as well as the Center’s
professional staff conduct research and provide policy recommendations in the key
socioeconomic issues confronting the State.
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For details, or to arrange an interview, please contact Gal Ben Dor, Director of
Marketing and Communication 054-464-2333.
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