This article critiques Esping-Andersen’s class-based theory of welfare regimes, demonstrating that the theory’s scope conditions are
not fulfilled by the Israeli case during the country’s first three decades. It traces the transition of Israel’s welfare regime and the consolidation of its welfare state in the 1970s. Based on historical analysis, the article points out two incongruities between Esping-Andersen’s theory scope conditions and the case of Israel. Further, it argues that the transformation of Israel’s welfare regime can be better explained by institutional historical theories that highlight the impact of the production regime on welfare and the significance of conflicts between high-skilled and lowskilled workers.