Mdd – you’re wrong.
1) Men don’t stay in Kollel forever in EY. Who would be the Roshei Yeshiva, maggidei shiur, rebbes, etc, for all of the myriads of men, teens and children that the chareidi system has in it? It cannot just be a few of them.
2) There are plenty of women who DO work, either in chinuch or as secretaries, clerks, etc. Some work out of their houses and some have created jobs to do within their houses – even selling clothes or other things at night from the house is a form of employment. Many do shaitels or have a gan in their house, do babysitting, etc. All of this is “employment”. Yes, the ones in the house do not usually require payment of taxes, but there are plenty of people who do things on the books. It used to be easier to have a sale in your house that the tax authorities would not find out about. Now, with all of the advertisements put out every week, it would not take an employee of Mas Hachnasa long to figure out who has a sale in their house and going to make sure that they declare things properly.
3) Only if you get “Datot” or “Haftachat Hachnasah” (income supplement for those with very low income) do you get money. You’re right, it’s not a lot, but I’m sure no one is “living on it”. Expenses are way tooo high, even on the standard of living here. People have to pay rent/mortgage, food, clothes, etc, just like the rest of people around the world. Not only that, but these people have this crazy idea of buying an apartment for each child (usually the daughter) that gets married. Where exactly do they get the $ from that? Even if they go collecting tzedaka, they also have to pay for a chassanah and all of the other things to set up a house, not just pay for the apartment. That’s why women work.
By the way, to whoever asked, even for someone in kollel, Kupat Cholim is NOT free. You pay a certain set amount for Bituach Leumi per month and from that you are entitled to Kupat Cholim. This is the same rule for anyone who has low income.