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The global labor market in general and the Israeli market in particular have been experiencing considerable changes in recent decades, affecting the supply of jobs in various occupations. There seems to be an association between changes in the supply of jobs in the labor market and shifts in the demand for higher education. Examination of two case studies in the Israeli economy shows a bidirectional interaction between the labor market and the system of higher education. In one case, thedoi:10.5430/ijhe.v7n6p150 fatcat:it73ufa3tfcfrkh55nkcsixope