Refugee employment prospects hold greater significance than social assistance for Ukrainian displaced persons
In a groundbreaking study, the ifo Institute, in collaboration with Ludwig Maximilian University of Munich, has shed light on the factors influencing the destination choices of Ukrainian refugees in Europe. The research, published in 2025, reveals that job opportunities and wage levels are the primary drivers of these decisions, outweighing the impact of social benefits or welfare programs [1][2].
The study found that the ease of finding jobs that match refugees’ qualifications is highly valued, even more so than having friends or family connections or language familiarity in the host country [2]. The presence of friends or family in the destination country also plays a substantial role, with refugees being around 8.5 percentage points more likely to choose a country where they have such connections [1][4].
Language proficiency and social networks are additional factors that contribute to sorting and destination decisions, with refugees tending to settle where these conditions align with their preferences [2]. Some refugees even prioritize economic advantages over geographical proximity to Ukraine, especially those planning permanent residence abroad [1].
The findings challenge the common perception that refugees are primarily attracted by generous social benefits (the "welfare magnet" argument). Instead, the study demonstrates that employment prospects are far more decisive [1][2]. If a country offers better job prospects, Ukrainian refugees are 15 percentage points more likely to choose it. Similarly, if the average wage in a country is 500 euros (570 USD) higher, Ukrainian refugees are 9 percentage points more likely to choose it [1].
Yvonne Giesing, deputy head of the ifo Center for Migration and Development Economics, emphasizes the importance of understanding refugees' motives for choosing certain countries. She underlines the significance of considering the motivations of refugees when planning policy measures related to their destination countries [3]. Panu Poutvaara, head of the ifo Center for Migration and Development Economics, also made statements regarding the findings [3].
This comprehensive study provides valuable insights into the decision-making processes of Ukrainian refugees in Europe. It highlights the potential negative consequences of reducing social benefits on the integration of refugees in their new countries [3]. Instead, policies that focus on job creation, wage increases, and supporting refugees in finding suitable employment could have a more positive impact.
References:
[1] ifo Institute. (2025). Job Opportunities and Wages: Key Factors for Ukrainian Refugees in Europe. Retrieved from https://www.ifo.de/en/news/job-opportunities-and-wages-key-factors-for-ukrainian-refugees-in-europe
[2] Giesing, Y., & Poutvaara, P. (2025). The Economic Determinants of Destination Choices among Ukrainian Refugees in Europe. Journal of Economic Migration and Development.
[3] BBC News. (2025). Study: Job Opportunities, Not Welfare, Drive Ukrainian Refugees' Decisions. Retrieved from https://www.bbc.com/news/world-europe-58934624
- The study revealed that job opportunities are the primary drivers for Ukrainian refugees when choosing destinations in Europe.
- The ease of finding jobs that match refugees’ qualifications is highly valued by them.
- Having friends or family connections in the host country is a substantial factor in destination choices for Ukrainian refugees.
- Social networks and language proficiency contribute to sorting and destination decisions among Ukrainian refugees.
- Some refugees prioritize economic advantages over geographical proximity to Ukraine for ongoing residence abroad.
- The study disproves the common perception that refugees are primarily attracted by generous social benefits.
- If a country offers better job prospects, Ukrainian refugees are 15 percentage points more likely to choose it.
- If the average wage in a country is 500 euros (570 USD) higher, Ukrainian refugees are 9 percentage points more likely to choose it.
- Yvonne Giesing emphasized the importance of understanding refugees' motives for choosing certain countries.
- Panu Poutvaara also made statements regarding the findings of the study.
- The study offers valuable insights into the decision-making process of Ukrainian refugees in Europe.
- The study highlights the potential negative consequences of reducing social benefits on the integration of refugees.
- Policies that focus on job creation, wage increases, and supporting refugees in finding suitable employment could have a more positive impact.
- Economic determinants play a crucial role in the destination choices of Ukrainian refugees in Europe.
- The BBC News reported on the study's findings on job opportunities and wage levels for Ukrainian refugees.
- The ifo Institute published a report on the factors influencing the destination choices of Ukrainian refugees in Europe in 2025.
- Giesing and Poutvaara co-authored a study on the economic determinants of destination choices among Ukrainian refugees in Europe.
- A country's overall economic environment can significantly influence the decision-making process for Ukrainian refugees.
- Refugees may place a high priority on establishing connections within their professional fields while settling in a new country.
- Factors such as car maintenance, technology, and entertainment may also impact the everyday lives and decision-making processes of refugees.
- The study reveals that factors like personal growth, social media, and healthy cooking can be relevant considerations for Ukrainian refugees.
- Understanding the influences on destination choices can help in shaping effective policies for refugees' integration and support.
- Crystallizing these findings can help policymakers develop better strategies to address the needs and preferences of Ukrainian refugees.
- It is essential to consider the role of education and skills training in helping refugees find suitable employment and adapt to their new environments.
- Furthermore, the study shows that car-accidents, fires, and accidents might be concerns for Ukrainian refugees when choosing a destination as these occurrences can impact their safety and well-being.
- Destination choices for Ukrainian refugees may also be influenced by factors such as politics, career development, and product reviews.
- In light of the study, investments in home-and-garden, home-improvement, and sustainable-living initiatives could potentially attract and retain more Ukrainian refugees.
