Tag: Europe
Three Years On – Ukrainians in Poland after Russia’s 2022 Invasion

The wave of Ukrainian refugees which followed the full-scale Russian invasion on February 24th, 2022, was in Poland met with unprecedented levels of support and solidarity. According to data from the Polish Household Budget Survey, 70 percent of households offered some help, and over 10 percent (1.3 million households) provided direct personal assistance. Overall, by early 2025, 1.9 million refugees had registered in the dedicated social security registry (PESEL-UKR system) and 1 million continue to be registered as residing in Poland. Drawing on other data sources we argue in this policy paper that the latter figure is highly overstated, giving rise to unjustified criticisms of low school enrolment among Ukrainian children, and low rates of labour market activity among adult refugees. We highlight the risks that these critical voices may become prominent in the ongoing campaign ahead of the Polish presidential elections. During the crucial months of prospective peace negotiations, when presidential candidates are appealing for voters’ support, we argue that the public debate in Poland concerning Ukraine and Ukrainian refugees, ought to be grounded in reliable evidence.
Introduction
The dramatic events of late February 2022 shook the populations across Ukraine, Europe and the world. The objective of the massive, full-scale Russian aggression was clear – to rapidly take over Kyiv, force Ukraine to surrender and take over full control of the country thus subjugating it into Kremlin’s rule. Three years later, while thousands of Ukrainian soldiers and civilians have lost their lives, and while Russia has imposed a massive economic and social burden on Ukraine, its key objective has badly failed and remains far from being realised. This thanks to the commitment of the Ukrainian government, the country’s army and the mobilisation of the Ukrainian population. In turn, the country’s resistance would not have been possible without substantial support from the outside, primarily from countries in the European Union and the U.S. International aid from governments to Ukraine between February 2022 and October 2024 amounted to over €230 billion (bn) with the largest part contributed by the US (€88 bn), the European Commission and European Council (€45 bn) and Germany (€16 bn). Proportional to 2021 GDP levels, the highest support came from Estonia (2.20 percent), Denmark (2.02 percent) and Lithuania (1.68 percent) (Kiel Institute, 2024). Support for Ukraine has come in many forms – military, material, financial, political and diplomatic. The international community has also imposed substantial economic and political sanctions against Russia, and has excluded it from many international forums, marginalising its voice in international discussions and meetings.
On top of that, Ukraine’s neighbours and many Western countries opened their borders and welcomed a massive wave of refugees escaping the immediate military invasion in the east and north of Ukraine, seeking safety from continued bomb and drone attacks on the entire country, and running away from the risk of a complete Russian take-over. It is estimated that up to 8 million Ukrainians left the country in the first months after the full-scale war started, initially moving mainly to Poland, Romania and Slovakia (Polish Economic Institute, 2022; UNCHR, 2022). At the same time the Russian aggression resulted in internal displacement of more than 3.6 million Ukrainians (IOM UN Migration, 2024). While many of the international and internal refugees have since returned, over 6.8 million Ukrainians still reside outside of Ukraine’s borders (UNCHR, 2025).
The wake of the war was met with an unprecedented wave of support among the Polish population (Duszczyk and Kaczmarczyk, 2022). We use data from one of the largest representative Polish surveys – the Household Budget Survey 2022 and 2023 – to show the degree of involvement among Polish households in direct and indirect support to Ukrainian refugees. We also show that declarative general sympathy towards Ukrainians reached over 50 percent in 2023 – twice as high compared to 16 years earlier. This support has by now fallen close to the levels from just before the full-scale war (40 percent). As the immediate need for help has become less urgent, and the refugees have organised their lives in Poland, the involvement of Polish households in supporting the Ukrainian population has also declined. At its peak at the beginning of the war the proportion of Polish households that were actively involved in helping the Ukrainian population reached nearly 70 percent, with over 10 percent (i.e. more than 1.3 million) of the households providing direct assistance to the refugees.
In this policy paper we call into question some of the official data on the number of Ukrainian refugees who continue to reside in Poland (almost 1 million) (EUROSTAT, 2025). We argue that inconsistency across different sources with regard to precise numbers – such as likely inflated refugee count in the official social security register – may be used to build unfavourable claims against the refugees and the Ukrainian cause overall, as arguments and narratives develop based on marginal anecdotal evidence and incorrect statistics. As the new U.S. administration tries – in its own way – to bring an end to the war, Ukraine will need continued strong support from all Western allies to end the war on favourable terms for Ukraine and to get significant additional help to rebuild the country. Ukraine’s safety and economic security will depend on Western military guarantees and closer integration with the EU. All of this requires the support of populations in these countries, which gets increasingly undermined by internal disputes and external political interferences.
As negotiations to end the war begin to take shape, Poland enters a crucial electoral campaign ahead of its May 2025 presidential elections. This combination is likely to place the Ukrainian question among the top issues on the local agenda. At the same time, there is a risk that the extent of support towards Ukraine and Ukrainian residents in Poland will be used in the battle for electoral votes. We argue that any debate around this topic should draw on reliable, up to date data sources. In this regard, the government should provide more information to clarify data inconsistencies, to shed more light on the situation among Ukrainian citizens currently residing in Poland, and to ensure that any doubtful narratives raised in the public debate are quickly addressed.
Ukrainian sovereignty, its peaceful development and prosperity are very much in the interest of both Poland and the rest of Europe. Therefore, the Polish government must provide arguments to reinvigorate the support for Ukraine among its population. This will be fundamental to ensure Ukraine’s military success and stability, to guarantee the mutual benefits of integration of the Ukrainian population in Poland, and for the future economic cooperation with Ukraine in the prospective enlarged European Union.
The Outbreak of the Full-Scale War: Ukrainians in Poland
In the first couple of months after the full-scale Russian invasion of Ukraine on February 24th 2022, over 2 million refugees fled to Poland through the common land border, with as many as 1.3 million people crossing the border during the first two weeks of the war (Figure 1a). The exact number of refugees who arrived in Poland is difficult to gauge as some people left Ukraine via the border with Romania or Slovakia and could have entered Poland across the uncontrolled borders of the Schengen area.
BOX 1. Ukrainian citizens in Poland before the war in 2022 Before February 24, 2022, the migration of Ukrainian citizens to Poland was regulated by existing legal mechanisms concerning all foreigners coming from non-EU countries (European Parliament, 2010). Migrants could apply for a temporary residence permit for a maximum of three years, most often in connection with prearranged employment or education (Sejm RP, 2013). Since 2017 Ukrainian citizens with biometric passports could travel to Poland and other EU countries without a visa, but their stay was limited to 90 days (European Parliament, 2017). Access to the Polish social transfer system for migrants and their families was strictly regulated and limited. Labor migrants and temporary visitors under the visa-free regime had no right to public benefits or healthcare (Sejm RP, 2003). |
At the time, application for refugee status was possible, but required undergoing a lengthy and burdensome asylum procedure. Those with refugee status granted had access to public transfers and healthcare (Sejm RP, 2003).
In accordance with the European regulations of Council Directive 2001/55/EC of 20 July 2001, the Polish government responded to the refugee crisis by establishing a special residence status for those fleeing the war. The regulations were introduced as early as March 12, 2022, and as a result, all Ukrainian refugees who arrived in Poland since 24 February could register themselves (and their family members) in a special social security registry, the so-called PESEL-UKR (Sejm RP, 2022). This registration immediately provided the refugees with an official status of temporary protection and legalized their stay in Poland until a specified date, which – as the war continued – has been regularly extended. In comparison to other, non-EU migrants, the PESEL-UKR status grants the refugees simplified access to the Polish labour market and gives them access to public healthcare and social transfers – including general support available to all legal residents, as well as special financial and non-monetary aid targeted specifically at refugees (Duszczyk and Kaczmarczyk, 2022). The registration process was streamlined and widely accessible in all municipality offices throughout Poland and resulted in rapid registration of the majority that had arrived to Poland since February 24, 2022. By the end of June 2022, 1.2 million individuals had registered for the PESEL-UKR status. The number grew to 1.4 million by October 2022 and continued to grow to 1.9 million registrations by January 2025. As evident from Figure 1b not all of those who crossed the Polish border (or arrived in Poland having left Ukraine through a different country) stayed in the country. Some continued their journey to other EU countries and beyond, while some decided to return to Ukraine. It is worth noting though that of all the registrations carried out by the end of 2024, nearly half happened in the first 8 weeks following the invasion.
Figure 1. Number of Ukrainian citizens crossing the border between Poland and Ukraine and registering for PESEL-UKR, 2021-2024

Note: Weekly data on crossings via all land borders with Ukraine.
Source: Open Data Portal (2025a, 2025b).
A notable and important legal change was introduced in October 2022, whereby individuals are automatically withdrawn from the PESEL-UKR registry after a period of 30 days when they (1) leave Poland, (2) apply for a residence permit, or (3) apply for international protection status (Sejm RP, 2022). This change is the reason for the substantial drop in the number of registered refugees at the end of 2022, with over 400 000 individual withdrawals (Figure 1b). This change in legislation was aimed at estimating more precisely the number of Ukrainian refugees currently residing in Poland. However, since withdrawals from the system require that departures from the territory of Poland are officially recorded at the border, or follow a parallel registration in another EU country, or are recorded as departures from the Schengen area through another country, the numbers in the system may still be far from the actual number of refugees currently residing in Poland.
Since late 2022 the number of registered Ukrainian refugees in Poland has been fairly stable at slightly below 1 million. Similarly, the shares of different age cohorts have not changed. In Figure 2 we show the split of those in the PESEL-UKR registry by age. Children under the age of 18 account for about 40 percent of all refugees, of which 30 percent are in schooling age (7-17). 7 percent of the refugees are aged 62 years or older. Among those aged 18-61 years old, 70 percent are women. It is worth noting that out of about half a million children recorded in the first 7 months, almost 400 000 are still registered in the PESEL-UKR registry, a number that has been stable since the end of 2022. As we show below, these values are significantly higher compared to the number of refugee children reported by two other administrative sources. This in turn casts doubt on the reliability of the estimates of the total number of Ukrainian refugees in Poland.
Figure 2. Ukrainian citizens registered with PESEL-UKR, by age group

Note: Based on registered year of birth, age as of 2025.
Source: Open Data Portal (2025b).
Where Are All the Registered Children?
To check the reliability of the PESEL-UKR registry data, we match the information from the registry with information from school registers provided by the Ministry of National Education, and the number of children benefitting from social transfers provided by the Social Insurance Institution (ZUS). As evident in Figure 3, the number of registered school-age children in the PESEL-UKR registry and the number of those who are officially registered in Polish schools significantly differ, and the difference seems stable over time. According to school records, most of the Ukrainian parents promptly enrolled their children in schools right after their arrival in Poland – about 120 000 pupils joined Polish schools as early as March 2022. The numbers grew in September 2024, which followed the introduction of obligatory schooling for all Ukrainian children aged between 7 and 17 (Sejm RP, 2024), with online classes in Ukraine permitted only for those in their final year. When we compare data for late 2024 and early 2025, we see that while about 270 000 children aged 7-17 were registered in the PESEL-UKR database, only 152 000 attended Polish schools – resulting in a very low enrolment rate of about 56 percent – raising legitimate concerns over the children’s academic and social development (see for example CEO, 2024).
Figure 3. Number of school-age children among Ukrainian refugees

Note: School registrations: all school types except preschool education, post-secondary schools, schools for adults and grades in which children are at least 18 years old. Ukrainian refugees only. Child benefit data points as reported in June, October and December.
Source: Open Data Portal (2025b, 2025c); information on 800+ benefit recipients: unpublished data from the Social Insurance Institution (ZUS).
As evident from Figure 3 though, from late 2023 all the way until early 2025, the ‘800+ benefit’ (which is a universal child benefit paid to all children aged 0-17) was paid to around 150 000 Ukrainian refugee children aged 7-17. Given the ease of claiming the benefit, and the relatively high value of the transfers (about 23 percent of net minimum wage per child per month), it seems very unlikely that so many families would opt out of the support. Looking at the close match between the numbers from ZUS and from the Ministry of Education, the more likely interpretation of the figures is not that children stay away from school and fail to claim social transfers, but rather that far fewer children continue to reside in Poland.
An additional argument supporting the inaccuracy of the PESEL-UKR data comes from a report published by the Narodowy Bank Polski (the Polish Central Bank) (NBP, 2024). Using information from a large survey conducted among Ukrainians living in Poland the report shows that 83 percent of school-age children in refugee families were enrolled in either a Polish or a Ukrainian school physically based in Poland. This is very far from the 56 percent rate calculated with reference to administrative data, again suggesting that the PESEL-UKR numbers of school-age children are highly inflated. If that is the case, not only the number of refugee children but the overall PESEL-UKR numbers (992 000 by January 2025) should be called into question.
How Many of the Registered Adults Are Active on the Labor Market?
The accuracy of the overall number of refugees is important because it is one of the key references for policy discussions. While international regulations specify that victims of war and conflict are granted the same basic rights and privileges as other legal residents, including access to the labour market, healthcare and other public services (Duszczyk et al., 2023), negative sentiments towards Ukrainian citizens have recently grown in Poland. Further, various restrictions on access to public support for Ukrainian refugees have already been publicly discussed and proposed in Parliament. These sentiments feed on the claims of fraudulent behaviour, unwillingness to engage in official employment and crowding out of public services for Polish nationals. Such claims about Ukrainians are spread more easily if not met by accurate numbers.
Figure 4. Number of Ukrainian men and women contributing to pension insurance in Poland

Note: ‘Other countries’ refers to other registered foreigners.
Source: Social Insurance Institution ZUS (2024).
Looking at labour market activity, the number of Ukrainians who were officially active on the Polish labour market (as employees, self-employed or receiving unemployment benefit) and who thus paid pension contributions to social security in December 2023 stood at 759 000 (see Figure 4). Of those 396 000 were men and 363 000 were women. While ZUS, the Social Insurance Institution, does not distinguish between migrants (those with the right to stay before February 24th, 2022) and refugees (with PESEL-UKR status) it seems safe to assume that those who registered in the ZUS database in 2022 and 2023 belong to the latter group. The difference between the number of Ukrainians contributing to social security in December 2021 and December 2023 is 132 000 and, as seen in Figure 4, the additional numbers of those registered differ only for Ukrainian women. New Ukrainian male refugees certainly also appear in the database in 2022 and 2023, but their number is difficult to estimate as some earlier migrants returned to Ukraine after the outbreak of the war, and as a result the net effect of men between 2021 and 2023 is essentially zero. Focusing on women, we can compare the number of new registrations in the ZUS database to the total number of women aged 18-59 (excluding students) in the PESEL-UKR database (about 335 000 in December 2023). Such a ratio would suggest that only about 40 percent of female Ukrainian refugees are formally contracted on the Polish labour market (on contracts paying social security contributions). This is much lower than the values presented in the NBP report (2024), suggesting that in July 2024, around 70 percent of the adult war refugees were working and further 19 percent were looking for a job. This comparison once again suggests that the PESEL-UKR numbers are significantly inflated.
Addressing the public concerns with regard to school enrolment and labour market activity with correct figures could help counter the growing negative sentiments towards Ukrainians in Poland as well as towards the overall support for the process of securing peace in Ukraine and integrating it closer with Poland and the EU. In the next section we show that when the full-scale war started in February 2022, not only the sentiments were strongly in favour of supporting Ukraine. Additionally, the level of engagement of the Polish population in actively assisting Ukrainian refugees was truly unprecedented.
Individual Support in Response to the Outbreak of the War
In the first few weeks after the full-scale Russian invasion the Polish society almost uniformly united in providing help and assistance to Ukrainians affected by the war. The Polish Economic Institute estimated that during the first 3 months the financial, humanitarian and material help provided by the Polish society alone reached 9-10 billion PLN, which corresponded to 0.34-0.38 percent of Poland’s GDP (Baszczak et al. 2022). Polish private businesses were also quick to join the assistance efforts, donating money, food, medical and other specialized equipment, and providing services such as transportation, insurance, and education free of charge (WEI 2023). Until May 2022, 53 percent of Polish enterprises engaged in different kinds of relief or support.
The assistance to refugees has been documented in numerous anecdotes, formal reports and extensive media coverage. The scale of support is also reflected in the Polish Household Budget Survey, a regular household survey conducted by the Central Statistical Office. Already in the first quarter of 2022 the survey included several questions related to the assistance given by the interviewed households to Ukrainian refugees. These questions were then included in the survey throughout 2022 and 2023. As shown in Figure 5, when the inflow of refugees from Ukraine started in late February 2022, nearly 70 percent of Polish households offered some form of assistance. Most of this help took the form of gifts and money transfers, but 10.4 percent, i.e. over 1.3 million Polish households, offered direct help such as transport, providing an overnight stay, delivering goods to accommodation venues, etc. The fraction of those offering assistance stayed very high through the first half of 2022, and 23 percent of Polish households still provided some form of assistance in the last quarter of 2022 (Figure 5). As the war stalled, and the Ukrainian population settled and became more independent, and the Polish government took official responsibility of assisting those still in need, the level of direct support from households fell. However, in late 2023 9 percent of Polish households still continued to provide some form of assistance. What is really special about the initial wave of support is that the positive attitudes towards the refugees and the Ukrainian cause were nearly universal. As seen in Figure 6, assistance was offered by high and low educated households (79 and 59 percent), those living in large cities and in rural areas (73 and 68 percent), the young and the old (66 and 63 percent). Households who declared good material conditions were more likely to offer help (75 percent), but even among those who declared difficulties with their financial status 41 percent came forward to offer some assistance.
Figure 5. Polish households engaged in assisting Ukrainian refugees, 2022-2023 (by quarter)

Note: Help covers support and transfers to individuals and institutions in Ukraine as well as to Ukrainian refugees in Poland. “Personal assistance” – direct help to refugees (with job search, doctor’s visits, public matters, language lessons, translation, etc.), “Other help” – help at the border, in reception points, temporary accommodation points, gift collection points, transportation, hosting or subletting own housing free of charge, blood donation.
Source: own compilation based on the Polish Household Budget Surveys 2022-2023.
Figure 6. Polish households engaged in assisting Ukrainian refugees (any help) in the first quarter of 2022, by household characteristics

Notes: Urban status – A: rural area, B: city below 100 000 inhabitants, C: city over 100 000 inhabitants. Material situation (self-assessed) – D: bad or rather bad material situation, E: average material situation, F: good or rather good material situation. Age of head of household – G: 18-29, H: 30-59, I: 60 and older. Education of head of household – J: lower than secondary, K: secondary or postsecondary, L: tertiary. Source: own compilation based on the Polish Household Budget Survey 2022.
It is worth noting also that by the time the full-scale war broke out in February 2022 the sentiments among the Polish population towards Ukrainians had improved compared to attitudes in the 1990s and early 2000s. These sentiments have been regularly surveyed by the Public Opinion Research Center CBOS, and we summarize them in Figure 7. As evident, in the early 1990s the proportion of Poles declaring positive sentiments towards Ukrainians was very low. It steadily increased until about 2017 and then grew rapidly from 2018 till 2020. In 2022 the sentiments towards Ukrainians reached their peak, with over 50 percent of Poles declaring fondness towards them – on par with nations such as Lithuania and Slovakia. At the same time positive attitudes towards Russians reached an all-time low of 6 percent. Positive sentiments towards Ukrainians declined in 2024 – the last year for which the data is available – but even after the drop they are still high when compared with attitudes before 2023.
While the general positive sentiments towards Ukrainians in Poland has improved over the years, 2022 was truly unique when it comes to attitudes toward Ukrainian refugees (see Figure 8). Between 2015 and 2018, i.e. after Russia’s annexation of Crimea in 2014, around 50-60 percent of Poles declared that refugees from the conflict areas in Ukraine should be welcomed in Poland. When the same question was asked again in March 2022, 95 percent agreed that Ukrainian refugees should be welcomed in Poland and nearly 60 percent declared that they ‘definitely’ agreed with such a policy. However, the proportion of Poles in support of welcoming Ukrainian refugees has decreased. In late 2024 the share was more or less back at the level prior to the full-scale war, i.e. at over 50 percent.
Figure 7. Share of survey participants declaring fondness towards foreigners of different origin

Source: The Public Opinion Research Center CBOS (2024a).
Figure 8. Opinion survey: If Poland should accept Ukrainian refugees coming from the conflict territories

Note: The surveys were discontinued between 2018 and 2022.
Source: Public Opinion Research Center CBOS (2024b).
Why Have Sentiments Shifted?
At the crucial time of a possible long-awaited end to the Russian invasion, when coordinated support of Western governments will be essential to secure a just and long-lasting solution, the willingness of these governments to firmly stand behind Ukraine will, to a large extent, depend on the sentiments among their voters. Thus, the wavering enthusiasm for the Ukrainian cause in countries such as Poland can be seen as a worrying sign, in particular given how high the level of support was in the early days of the invasion. This support will be particularly important over the next few months, given the likely period of intensive international negotiations and the battle for votes in the upcoming Polish presidential elections.
It is not unusual to try to put the blame for various unfortunate developments on external forces, including global trends, external conflicts and all things ‘foreign’. Thus, the fact that many people in various countries, including Poland, blame their perceived worsened economic conditions on the consequences of the war and the related influx of Ukrainian refugees is far from surprising. While some politicians might want to explain the complex broad context, others will take advantage of these sentiments and continue to fuel the negative discourse. With that in mind, three main topics have been particularly visible in the public debate in Poland:
- access to social transfers, in particular to the ‘800+’ child benefit for Ukrainian refugees
- Ukrainian refugees’ participation in the Polish labour market and tax contributions to the local budget
- risks to particular groups of interest, most prominently reflected in Poland by the crisis surrounding imported Ukrainian grain (see Box 2)
The first two issues are strongly related to the general approach to immigration and integration of migrants in the Polish society. The popular media discourse – in traditional and social media – tends to focus on instances of abuse of social support and public services, and to build up negative sentiments along the lines of supposed unwillingness to engage in legal economic activity among those who have settled in Poland. While one can certainly identify anecdotes which selectively confirm all sorts of misbehaviour, the overall evidence would clearly reject such claims. As discussed, the surveys conducted by the NBP show that a significant majority of migrants and refugees from Ukraine find legal employment in Poland. Further research based on administrative data demonstrates that many Ukrainians establish and successfully run their businesses in Poland (Polish Economic Institute, 2024). Between January 2022 and June 2024 Ukrainian migrants and refugees established almost 60 000 enterprises in Poland, and as Vézina et al. (2025) argue, these firms did not crowd out Polish businesses, meaning they represent a true value added to the national and local economies.
Recent public discussions, however, have focused on the combination of employment and benefit claims. The debate started with two parliamentary initiatives by the right wing Konfederacja and Prawo i Sprawiedliwość opposition parties and was then picked up by the leading government party’s presidential candidate, Rafał Trzaskowski (money.pl, 2025). The proposed legislative changes are broadly similar, suggesting that access to the main child benefits – the ‘800+ benefit’ – should be limited to those refugee families where at least one of the parents is formally employed. Such conditionality does not apply to Polish families, and according to current legislation, to no other families legally residing in Poland (Konfederacja, 2025; Prawo i Sprawiedliwość, 2025). The supposed aim of the changes would be to, first of all, limit fraudulent claims among those who no longer reside in Poland, and secondly, to restrict access to the benefits to those who contribute with their taxes to the public budget only. On both counts the policy seems badly misconceived. As shown above, the ‘800+’ claims closely match the numbers of children officially registered in Polish schools, far below the numbers registered in the PESEL-UKR database. Moreover, such a policy is unlikely to lead to much higher employment among refugee parents. The benefit is universal and received by all families regardless of employment status or income; previous research has shown a similar benefit to have negligible effects on employment (see for example: Myck and Trzcinski, 2019). Therefore, the most likely reason for some refugee parents to not take up work is not unwillingness, but rather other constraints – constraints which will not change as a result of the proposed restrictions. Most Ukrainian families who fled the war are mothers whose partners could not join them due to military restrictions on the mobility of Ukrainian men. While many women settled and found jobs, family obligations may significantly limit some refugee’s options for regular employment. For these families, withdrawing the eligibility for the ‘800+ benefit’ would be a significant loss of income with potentially dire consequences for their children. It is thus difficult to understand the initiatives as anything other than attempts to address the growing critical sentiments towards the refugees to gain support among voters who are convinced by the anecdotal narrative. As argued above – with the exception of anecdotes – there is very little evidence in support of such legislative changes. Even from the point of view of potential budgetary gains, the proposed limitations on benefit claims would impose heavy administrative costs which would likely exceed any resulting savings. The politicians coming forward with such proposals would be well advised to consider data from various sources and avoid raising issues which have a clear potential to fuel negative sentiments towards refugees and migrants.
BOX 2. The dispute over the Ukrainian grain In February 2022, Russia’s full-scale invasion destabilized the Ukrainian market, in particular the agricultural sector, due to blocked exports through the Black Sea. To enable exports, so-called Solidarity Lanes were established, including corridors crossing Poland (European Commission 2022). However, Poland was not prepared to handle and re-export large volumes of Ukrainian agricultural products, due to insufficient capacity of Polish sea ports (farmer.pl, 2023; for such quantities experts argue that road transport is unprofitable; Kupczak, 2023). This led to a surplus of grain in multiple storehouses throughout the country, especially in Southeastern Poland. Overall, Polish grain stocks increased by over 250 percent, from 3.8 to almost 10 million tones (Supreme Audit Office, 2023). The drastic surplus of grain, together with much lower prices for Ukrainian crops, led to a dramatic price drop—one could buy mixed Polish-Ukrainian grain for half the price it cost the previous year (rp.pl, 2023). Apart from its impact on quantity and price, Ukrainian grain drew public attention also due to concerns regarding its quality (money.pl, 2023). Imported agricultural and food articles must undergo rigorous quality controls at the border, depending on their purpose – human consumption, animal fodder or cultivation, conducted by the respective state inspection office. Random controls held in 2022 by the Food Articles Inspection revealed that 2.4 percent of the grain samples were banned from entering the market (rp.pl, 2023). According to a report by the Supreme Audit Office (2023), controls run by the Veterinarian Inspection were drastically limited as of May 2022 which allowed poor quality fodder grain to enter the Polish market (Supreme Audit Office 2023). Since technical grain – used in the production of biofuels, insulating materials or oils – is exempt from border quality controls, its imports and sale as consumable grain could be particularly profitable. Several incidents of such forgery were subject to investigation confirming that large quantities of technical grain originating from Ukraine were sold as consumable to Polish companies (gov.pl, 2024). The tightened border controls that followed, resulted in multiday delays in the transportation of food products from Ukraine. To mitigate these constraints an agreement was reached, and, as of March 8, 2023, grain transit through Poland to other final destinations (within EU or to a third country via Polish ports) is exempt from border controls at the Polish-Ukrainian border and sealed by the National Revenue Administration. These seals can be removed only at the final destination (gov.pl, 2023a). Throughout this period Polish farmers held demonstrations opposing the influx of Ukrainian grain. The border crossings with Ukraine were temporarily blocked by protests aimed at disrupting the flow of goods. The symbolic dumping of Ukrainian grain on the ground at the Medyka border crossing resulted in a famously cited statement by the Ukrainian President Volodymyr Zelensky that this event may be seen as evidence of the “erosion of solidarity” with Ukraine (BBC, 2024). After the EU-level temporary embargo on four types of grains and oil seeds from Ukraine was lifted in mid-September 2023 (which was in effect since May 2023), Ukraine agreed to introduce export measures to avoid grain surges (European Commission, 2023). Nevertheless, Poland administered a unilateral ban on selected products and their derivatives (gov.pl, 2023b), which led Ukraine to file a complaint with the World Trade Organization (WTO, 2023). While the ban still applies (gov.pl, 2025), the Polish government has on multiple occasions actively sought to convince the EU to include wheat (and other grains) among the crops covered by the quotas under the EU-level 2022 regulation on temporary trade liberalization with Ukraine (the Autonomous Trade Measures Regulation; OKOpress, 2024; European Commission, 2024). |
Conclusions
Considering the current approach by the U.S. administration under President Donald Trump, Ukraine’s position in the prospective negotiations will strongly depend on the support it can gather from its European allies. This in turn is likely to reflect the sentiments towards the Ukrainian cause among European voters. In Poland, where critically important presidential elections are scheduled for May 2025, the importance of these sentiments might be particularly salient. On the one hand, the candidates are likely to voice support for Ukraine to secure peace and stability in the region. On the other hand, they may appeal for support among voters who are critical of the generous approach of Polish public institutions towards Ukrainian refugees.
As shown in this policy paper, the critical voices highlighting instances of abuse of privileges granted to refugees are largely unfounded, and much of the critical discourse is linked to – in our view – highly inaccurate numbers of officially registered refugees with the PESEL-UKR status system. The government would do a service to the quality of the debate about Ukrainian refugees in Poland, and at the same time defuse some of the critical claims, by verifying the PESEL-UKR database.
Using administrative data on school enrolment and benefit claims we show that these match almost perfectly, with around 150 000 children aged 7-17 in both registries in late 2024. This is far less than the 270 000 children in this age group registered in the PESEL-UKR database and assumed to be residing in Poland. Similarly, survey data suggests that about 70 percent of Ukrainian refugees are active on the Polish labour market. This proportion is much lower when official data based on social security contributions is compared to the total number of adult refugees in the PESEL-UKR registry. The comparison once again suggests that the figures in the latter database are significantly overstated. It is thus very unlikely that the number of Ukrainian refugees in Poland is as high as the numbers officially reported in the registry (992 000 in January 2025).
The accuracy of the numbers is important for several reasons, and the ability to address various critical claims in the public debate is only one of them. At the time of an electoral campaign ahead of a highly significant presidential election, this reason, however, may prove fundamental to avoid further polarization of the debate about continued support for Ukrainian refugees in Poland. It is also crucial for securing strong support for Ukraine by the Polish government in the coming challenging months of peace negotiations. While it is likely impossible to restore the level of positive attitudes toward Ukrainian citizens seen in Poland in February and March 2022, that degree of solidarity should serve as a foundation for a deepened relationship between the two countries.
Acknowledgement
The authors acknowledge the support from the Swedish International Development Cooperation Agency, Sida. We are grateful to Patryk Markowski for helpful research assistance. The Polish Household Budget Survey data (2022, 2023) used in the analysis was provided by Statistics Poland (Główny Urząd Statystyczny). We are grateful to the Social Insurance Institution ZUS (Zakład Ubezpieczeń Społecznych) for providing us with unpublished data on child benefit recipients.
References
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Disclaimer: Opinions expressed in policy briefs and other publications are those of the authors; they do not necessarily reflect those of the FREE Network and its research institutes.
Gender Board Diversity Across Europe Throughout Four Decades

Despite comprising a large share of the workforce, women remain a minority in corporate boardrooms across Europe. While progress has been made in recent decades among public (listed) firms, diversity lags behind in private corporations. This policy brief showcases evidence from the Gender Board Diversity Dataset (GBDD) – a newly released, unique data source which covers a comprehensive sample of European private and public corporations over multiple decades. Uniquely, the GBDD encompasses private (non-listed) companies, a novel method for identifying the gender of board members based on linguistic and cultural heuristics, and a cross-country harmonization of firm-level data. These features make the GBDD a great tool for answering policy-related questions and enable cross-country and cross-sector comparisons. As such, the GBDD can help ensure that policies aimed at promoting gender board diversity are scientifically well grounded.
Background
The labor force participation rate of women in Europe has been rising over the last few decades and is approaching the participation rate of men. However, the proportion of company board positions held by women is still significantly lower. This issue has generated heated debate among academics (e.g. see Nguyen et al., 2020, for a recent literature review) as well as among the general public. It has also prompted several countries to mandate gender quotas for some companies (typically public companies or the largest limited liability companies). For example, in Norway, large and medium-size firms are mandated to guarantee that both women and men account for at least 40 percent of board members. Given the increasing proliferation of mandated gender board quotas across countries, it is imperative that the public be aware of the main facts concerning gender board diversity in a broad set of companies i.e. those that make up the largest proportion of the economy, offer the majority of jobs, and often remain outside the scope of quota legislation.
The Gender Board Diversity Dataset
The Gender Board Diversity Dataset (GBDD), created by Drazkowski, Tyrowicz, and Zalas (2024), provides a novel cross-country perspective on women in management and supervisory boards over the past four decades. The GBDD is based on firm-level registry data from Orbis, which the authors have harmonized to ensure comparability across countries. A key feature of the GBDD is that it covers registry information from both public and private (non-listed) companies. This makes it a comprehensive source of information as the majority of board positions, as well as the majority of jobs in general, are in private rather than public companies. Data on private companies are scarce, and the GBDD is one of very few data sources containing this information across Europe. The GBDD is based on a sample of over 28 million unique firms from 43 European countries observed, on average, for around seven years. It contains information about nearly 59 million individuals who sit on management and supervisory boards and covers the period between 1985 and 2020.
Another key component of the GBDD is the identification of the gender of board members, which is a key innovation compared to other studies that use Orbis data. While the original data do not specify the gender of individuals until 2010, they do include names and surnames, which the creators utilized to perform gender identification. By applying cultural and linguistic heuristics, they were able to determine the gender of over 99 percent of the board members in their sample. For example, in some languages (e.g. Czech), surnames end with a gender-specific suffix, while in other languages (e.g. Polish), given names of women end with a vowel.
The GBDD reports several measures of gender board diversity computed for countries over time, as well as for sectors in each country over time. As such, it is a unique source of information about gender board diversity in corporate Europe, and it can serve as a useful guide for policymakers and analysts. The data are publicly available and can be downloaded in various formats from the website of the authors’ research group: https://grape.org.pl/gbdd.
The Absence of Women in Boardrooms
A key insight emerging from the GBDD is that, despite women holding on average 22 percent of all board positions in a given industry, more than two-thirds of all firms report no women in their boardrooms. More specifically, 68 percent of sectors across the European continent over the past several decades have not had a single firm with at least one woman in their boardrooms. Figure 1 shows the fraction of firms in a sector with no women in the boardroom. This is a new measure in the literature. The x-axis shows the proportion of such firms in a sector, ranging from 0 (all firms in that sector have at least one woman on their boards) to 1 (women are absent from all corporate boardrooms in the entire sector). The y-axis shows the relative number of sectors in the sample for each of the observed fractions.
Figure 1. Fraction of firms with no women in the boardroom

Note: The figure details the distribution (countries and years are combined). Source: Drazkowski, Tyrowicz, and Zalas (2024).
This finding points to clusters of companies with potentially significant obstacles to gender board diversity. Since lack of representation could be considered a major barrier to diversity, policies aimed at promoting even minimal representation of women among board members could have a significant impact on overall diversity.
The Substantial Differences Between Industries and Countries
The average firm-level share of women on corporate boards is only around 16 percent in the IT sector, while it is 35 percent in the education, health, and care (EHC) sector. Figure 2 shows two distributions of the average firm-level shares of women among board members: one for the IT sector and the other for the EHC sector. The distribution for the EHC sector is clearly to the right relative to the distribution for the IT sector, which means that across multiple countries and years, women tend to constitute a much smaller proportion of board members in the IT sector than in the EHC sector. Furthermore, the proportion of observations with no female board members (the spike at value 0) is much higher in the IT sector than in the EHC sector.
Figure 2. Distribution across sectors

Note: Distribution of the firm-level share of women on boards across countries and years in two broad sectors. The following categories make up the two sectors. IT: 61, 62, 63; Education, health & care: 85, 86, 87. Source: GBDD.
Decomposing the data by country also highlights significant differences. For example, firms with no female board members tend to be more prevalent in Poland than in Finland. This is illustrated in Figure 3, where the distribution for Poland is shifted to the right relative to the distribution for Finland.
Figure 3. Distribution across countries

Note: Distributions of the share of firms in an industry with no female board members (Finland vs Poland). Source: GBDD.
The above data suggest that there may exist a set of sector- and country-specific barriers to gender board diversity. Therefore, policies tailored to addressing those specific barriers could be more appropriate than blanket economy-wide policies.
Diversity Has Mildly Increased
The GBDD can also be used to assess how gender board diversity has evolved over time. Generally, there was an increase in diversity in the 1990s, stagnation in the 2000s, and another increase in the 2010s. However, in the case of supervisory boards, the recent increase in the proportion of female board members was not accompanied by an increase in the number of women on supervisory boards. While the full explanation of this observation would require further research, one possible interpretation is that supervisory boards might have become smaller over time, with male board members accounting for most of the decline, thus mechanically increasing the share of female board members.
Conclusion
Despite the increase in gender diversity among company board members over the last three decades, women still comprise a smaller share of board members and, in many cases, are completely absent from boards. While examining the reasons for this is beyond the scope of this policy brief, the high prevalence of firms with no women on their boards suggests the possibility that significant barriers to entry for women still exist, with this total lack of representation in many companies potentially being one. Policymakers interested in fostering an inclusive and fair society could focus their attention on understanding and removing barriers to board participation faced by women. Furthermore, identifying and tackling country- and sector-specific barriers to board diversity could be particularly impactful. The GBDD can be used by researchers and non-researchers alike to gain further insights into this topic, thus contributing to evidence-based policymaking.
Acknowledgement
The research outlined in this policy brief was funded by Norwegian Financial Mechanism 2014–2021 (grant # 2019/34/H/HS4/00481).
References
- Drazkowski, H., Tyrowicz, J., & Zalas, S. (2024). “Gender board diversity across Europe throughout four decades” Nature (Scientific Data), 11(1), 567.
- Nguyen, T. H. H., Ntim, C. G., & Malagila, J. K. (2020). “Women on corporate boards and corporate financial and non-financial performance: A systematic literature review and future research agenda.” International Review of Financial Analysis, 71, 101554.
Disclaimer: Opinions expressed in policy briefs and other publications are those of the authors; they do not necessarily reflect those of the FREE Network and its research institutes.
What Is the Evidence on the Swedish “Paternity Leave” Policy?

Since 1995, Sweden has earmarked an increasing number of parental leave days to each parent, creating a strong incentive for fathers to increase their (traditionally low) parental leave uptake. The literature on the causal impacts of these policies establishes several important findings. First, the incentive seems to work, as fathers tend to increase their uptake of paternity leave. However, who responds to the incentive, the timing of the leave and how mothers adjust to it is heterogenous, depending on the policy design and the underlying couple characteristics. Second, there is no strong support in the data for the argument, popular in public opinion and among policy-makers, that paternity leave should improve the balance of childcare duties within a couple and ultimately enhance women’s labor market position. However, in order to estimate causal effects, the studies reviewed in this policy brief focus on the first cohort of families affected by earmarked parental policies, whereas impacts on mothers’ labor market outcomes are more likely to manifest in the long run. Further, paternity leave policies in the broader sense have benefitted mothers’ health post childbirth and they may also have broken the social stigma on fathers taking time off to care for their children. Finally, recent evidence suggests that earmarking has improved gender attitudes in the next generation, making men less likely to hold stereotypical views about gender roles in society.
Parental Leave in Sweden
All parents in Sweden have been entitled to paid parental leave benefits since 1974, with no difference between birthing and non-birthing parents (for simplicity referred to as mothers and fathers henceforth). Despite this, fathers’ parental leave take-up has historically been very low (see Figure 1).
To change this pattern, the legislator has introduced a few reforms over the years. In 1995, 30 of the wage-replaced days (i.e. parental leave days compensated at almost the rate of the daily wage) were earmarked to each parent, creating the so called ”mum/dad month”. When a parent failed to take up these 30 days these would be “lost”, as earmarked days could not be transferred to the other parent. Through two subsequent reforms, effective from 2002 and 2016 respectively, the number of earmarked wage-replaced days increased, first to sixty days and then to ninety days.
Today, the total allowance is 480 benefit days, of which 390 are wage-replaced (paid at about 80 percent of the parent’s wage), and the remaining 90 are compensated at a low flat rate (approximately 15 euros per day). 90 of the wage-replaced days are earmarked to each parent. The parental leave days can be utilized until the day the child turns 12 or until the child finishes 5th grade, but 80 percent of these days must be used by the time the child turns 4.
As shown in Figure 1, father’s share of the total parental leave steadily grew over the years when the earmarking reforms occurred but has since 2018 stalled at a rate of 69/31 (i.e., mothers and fathers take 69 and 31 percent respectively of the total number of leave days claimed in Sweden during one year).
Figure 1. Men’s share of parental leave days in Sweden, 1974-2021, in percent.

Source: Author’s compilation based on data from Statistics Sweden.
One could speculate, based on these trends, that earmarking might have successfully increased father’s take-up of parental leave. However, without rigorous statistical analysis, it is virtually impossible to distinguish between the role of the earmarking polices and secular trends in preferences over parental leave. Thankfully, a few papers have studied the Swedish parental leave reforms, using state-of-the art techniques to understand their respective causal impacts. What is the research-based evidence on the Swedish parental leave earmarking reforms? Did they successfully incentivize fathers to increase their take-up? Did they succeed in their broader goal of balancing child responsibilities within couples, ultimately helping women improve their position in the labor-market? How were children affected by them? What lessons from the Swedish experience can be useful for fine-tuning of the Swedish policy or for similar designs in other countries?
This policy brief delves into the academic literature on the impacts of the Swedish earmarking reforms. The review is by no means representative of the large amount of academic work produced on the Swedish parental leave reforms. Rather, it is a small selection of studies where results can be more easily interpreted as causal impacts, as they are based on comparing families with children born just before versus just after the relevant date for the policy implementation, and account for so called month-of-birth effects (see e.g. Larsen et al., 2017) when needed. Causal estimates can be more directly used to inform policy-making, which is what motivates the focus of this review.
Earmarking and Take-up of Paternity Leave
As explained above, the Swedish earmarking system creates strong incentives for fathers to increase their take-up of leave days, as these would otherwise be “lost”, leaving couples with the need to resort to potentially more costly arrangements for childcare.
It is thus not surprising that the 1995 reform increased fathers’ take-up of wage-replaced leave by an average of 15 days, 50 percent of the pre-reform take-up (Ekberg et al., 2013). This change seems to mostly stem from the 54 percent of fathers who were taking 0 days of leave before the reform and were induced to take between 20 and 40 days after, so that the percentage of fathers not taking any leave declined to 18 precent.
In a recent working paper, Avdic et al. (2023) complement this evidence, considering all leave days together. They show that the reform induced fathers to increase their take-up of total parental leave by 21 days, whereby mothers decreased it by the same amount. Therefore, on average, the total amount of leave taken by Swedish parents remained unchanged, but the mother’s share decreased by about 5.4 percentage points. The paper also compares changes in parents’ take-up month-by-month, finding that some mothers took some unpaid leave within the child’s first year to compensate for the loss of wage-replaced days. It is not clear why these mothers would not resort to the low flat rate leave, as other mothers seem to have done (see Ekberg at al., 2013). In general, the data points to fathers having mostly, although not exclusively, substituted for mothers’ time with the child during the child’s second year of life.
Avdic and Karimi (2018) extend the policy-evaluation to the 2002 reform, which earmarked one additional month to each parent, but also made one more month of wage-replaced leave available. They find that this reform also caused an increase in take-up of paternity leave, but for a different group of fathers. While in 1995 fathers that otherwise would have taken no leave were induced to take approximately one month, the 2002 shift occurred mostly among fathers who, instead of taking between 30 and 40 days of leave, started taking more than 50 days.
These findings are consistent with those in Alden et al. (2023), who study the characteristics of fathers who do not take any leave. They find that while the 1995 reform changed the composition of this group of fathers, the same thing did not happen with the 2002 and 2016 reforms. Over-time, one group of men consistently stands out for not taking any parental leave regardless of the incentives created by the legislator, namely fathers with worse labor-market positions, and whose earnings are lower than that of the mothers.
Paternity Leave and Gender Gaps
The main motivation for policies that seek to increase the take-up of parental leave among fathers is that this increase can help women, especially high-skilled ones, improve their labor-market position (Ekberg et al., 2013). The economics literature has long established a systematic loss in earnings and employment for women following the birth of their first child (the so-called child penalty; see e.g. Kleven et al., 2019). There are two main mechanisms through which earmarking policies could improve women’s labor market outcomes. First, if firms discriminate against women because of the (perceived) cost of maternity leave, the discrimination should decline once employers expect also men to take parental leave. Ginja et al. (2020) show evidence (although not causal) consistent with long maternity leaves reducing child-bearing aged women’s “attractiveness” among Swedish employers. Second, by creating a stronger bond between fathers and children, and by reducing mothers’ specialization in childcare, paternity leave should increase the time fathers allocate to childcare as the child grows up, thus re-balancing the division of non-market (and possibly market) work within the couple.
As pointed out in Cools et al. (2015), the first type of effect, more likely to be relevant in the long run, is hard to estimate with data from only one country, as virtually all employers in the country should be somewhat affected by the change in perceptions.
Instead, Ekberg et al. (2013) study the effect on intra-household division of childcare responsibilities, by estimating the impact of the 1995 reform on the amount of time that fathers and mothers claim off work when their child is sick. They find no evidence that the 1995 reform increased the share of time off taken by fathers to care for sick children. Consistently, the study also fails to find evidence of large and robust changes in mothers’ earnings for thirteen years post childbirth. Similarly, Avdic et al. (2023) show that mothers affected by the 1995 reform did not increase, on average, their labor supply, except during the first year of the child’s life.
While these analyses are extremely valuable for our understanding of the reforms’ effects on the first cohort of families affected, they fall short of capturing long-term dynamics. For instance, it is important to acknowledge that the decision on who takes time off when the child is sick depends on many factors, including the availability of flexible arrangements at work. Women are known for selecting into occupations and jobs that allow a more flexible schedule (Goldin, 2014). This pattern might change if the increase in take-up of paternity leave leads to updated expectations among women on partners’ willingness to share daycare responsibility. This is most likely a long-term development, which the design used in the above outlined studies does not capture.
Another effect of the Swedish parental leave system, not directly linked to earmarking but nevertheless indicative of the importance of fathers’ time off work during the child’s first year of life, is that on mothers’ health. Persson and Rossin-Slater (2019) show that a Swedish 2012 reform that in practice allowed fathers to take 30 days of parental leave in concomitance with the mother during the child’s first year of life reduced the likelihood of mothers experiencing health issues due to post-partum complications.
An important aspect that the literature has so far not emphasized is also that earmarking reforms might affect another gender gap, namely the “freedom” to take the leave. Given the traditional division of roles across genders, there might be a stigma at a societal level against men taking parental leave. By creating strong economic incentives for taking paternity leave, the earmarking policies may downplay the stigma in the short-term and break it in the long-term. There is some suggestive, although not definitive, evidence that norms around paternity leave might have changed. Avdic and Karimi (2018) show that between 1995 and 2002 the share of fathers who were taking more than one month of leave had already started increasing before the second month was earmarked. More research would be needed, however, to assess the role of policies in changing societal perceptions around paternity leave.
Paternity Leave and Children’s Outcomes
An obvious question to ask is how children are affected by earmarking of parental leave days. Avdic et al. (2023) study this question in the context of the 1995 reform. By looking separately at different groups of children by sex and parents’ education, they find that the 1995 reform caused a decline in GPA for sons of non-college-educated fathers and mothers. The most likely channel for this relationship, according to the authors, is boys’ diminished access to fathers’ time, due to the 1995 reform increasing the likelihood of couple dissolution within the child’s first three years of life (for households with low-earning mothers). At that time children tended to live predominantly with the mother in case of parental separation. However, a potential additional channel could be the worsened economic situation caused by the paternity leave. In households with low-earning mothers, mothers’ and family earnings declined post-reform due to mothers compensating for “lost” leave days by taking unpaid leave. Very conflictual separations could also be behind the effect on children’s GPA.
These findings highlight the importance of considering potential unintended consequences of the parental leave policies, and the diverse effects they might have on different demographic groups. Such considerations could improve the design of future policies. For instance, Avdic and Karimi (2018) find that the 2002 reform, which earmarked one more month and added one month of wage-replaced parental leave, did not cause couple dissolution. Thus, the authors conclude that not imposing strong constraints on households, while creating incentives for fathers to take paternity leave, is highly desirable.
Finally, in a very recent working paper, Fontenay and Gonzalez (2024) consider the effect of earmarking policies on children’s gender attitudes as adults, leveraging data from online surveys of 3,000 respondents across six European countries, including Sweden. They study changes in attitudes as measured by an Implict Association Test, which is meant to capture subconscious associations between women and family and men and career. In five of the countries studied they find that male respondents born soon after an earmarking reform have less stereotypical gender attitudes than those born before. No differences are detected for women. The effect in Sweden is one of the largest: in a sample of 237 male respondents, the father being eligible for the “dad-month” makes the child hold more egalitarian gender-attitudes as an adult by 0.3 standard deviations. The authors suggest that a role model effect might be at play, whereby boys who observe their fathers being more involved in childcare are nurtured to hold more egalitarian beliefs about gender roles.
Conclusion
Since 1995, Sweden has earmarked an increasing number of parental leave days to each parent, creating strong incentives for fathers to increase their previously very low parental leave uptake. This policy brief has reviewed the literature that studies the causal impacts of these earmarking reforms, highlighting a number of important conclusions as well as gaps in the knowledge on the effects of these policies.
First, the incentives created by the earmarking policies seem to work, as fathers tend to increase their uptake of paternity leave, while mothers tend to increase their labor supply during their child’s first year of life. However, such effects are heterogeneous, depending on the policy design and the underlying couple characteristics. Designs that impose strong constraints on household choices seem to have adverse effects on low-income or low-education households, reducing mothers’ earnings, triggering couple dissolution, and negatively affecting children’s GPA. Future increases in earmarking or similar policies in other countries should consider these design details carefully.
Second, there is no strong support in the data for the argument, popular in the public opinion and among policy makers, that paternity leave improves the balance of childcare duties within a couple and that it ultimately enhances women’s labor market position. However, to estimate causal effects, the studies analyzed in this policy brief focus on the first cohort of families affected by the earmarked reforms, whereas impacts on mothers’ labor market outcomes are more likely to be seen in the long run. After all, Sweden is one of the countries with the lowest documented child penalty in employment and earnings (see the child penalty atlas), and it is unlikely that policy played no role in narrowing gender gaps among parents. Consistently, recent evidence suggests that earmarking has improved gender attitudes in the next generation, making men less likely to hold stereotypical views about gender roles in society.
Further, it is important to mention that paternity leave policies in general have benefitted mothers’ post-childbirth health and that they may have broken a societal stigma around fathers taking time off to care for their children.
References
- Aldén, L., Boschini, A. and Tallås Ahlzen, M. (2023). Fathers but not Caregivers. http://dx.doi.org/10.2139/ssrn.4405212
- Avdic, D. and Karimi, A., (2018). Modern family? Paternity leave and marital stability. American Economic Journal: Applied Economics, 10(4), pp. 283-307.
- Avdic, D., Karimi, A., Sundberg, E. and Sjögren, A. (2023). Paternity leave and child outcomes. IFAU, Working Paper 25.
- Ekberg, J., Eriksson, R., and Friebel, G. (2013). Parental leave—A policy evaluation of the Swedish “Daddy-Month” reform. Journal of Public Economics, 97, pp. 131-143.
- Ginja, R., Karimi, A. and Pengpeng Xiao. (2023). Employer responses to family leave programs. American Economic Journal: Applied Economics, 15(1), pp. 107-135.
- Goldin, C., (2014). A grand gender convergence: Its last chapter. American Economic Review, 104(4), pp. 1091-1119.
- Gonzalez, L. and Fontenay, S. (2024). Can Public Policies Break the Gender Mold? Evidence from Paternity Leave Reforms in Six Countries. BSE, Working Paper 1422.
- Kleven, H., Landais, C., Posch, J., Steinhauer, A. and Zweimüller, J. (2019). Child penalties across countries: Evidence and explanation”. AEA Papers and Proceedings, 109, pp. 122-126.
- Larsen, E. R. and Solli, I. F. (2017). Born to run behind? Persisting birth month effects on earnings. Labour Economics, 46, pp. 200-210.
- Persson, P., and Rossin-Slater, M. (2019). When dad can stay home: fathers’ workplace flexibility and maternal health. National Bureau of Economic Research, Working Paper 25902.
Disclaimer: Opinions expressed in policy briefs and other publications are those of the authors; they do not necessarily reflect those of the FREE Network and its research institutes.
Georgian Economy and One Year of Russia’s War in Ukraine: Trends and Risks

Russia’s invasion of Ukraine profoundly impacted the global economy, immediately sending shockwaves across the globe. The attack of a country that was once a major energy supplier to Europe on the country which was one of the top food exporters in the world, sent food and fuel prices spiralling, causing major energy shortages and the prospect of protracted recession in the United States and the European Union.
The unprovoked and brutal aggression resulted in nearly universal condemnation and widespread sanctions placed on Russia by the United States, the EU, and other Western allies. Financial sanctions were perhaps the most unexpected and significant with the potential for immediate impact on Russia’s neighbours, including those that did not formally join the sanctions regime. In addition to sanctions, the major consequence of the war was mass migration waves, particularly from Ukraine, but also from Russia and Belarus to neighbouring countries.
At the start of the war, it was expected that the Georgian economy would be severely and negatively impacted for the following reasons:
- First, as a former Soviet republic, Georgia historically maintained close economic trade ties with both Russia and Ukraine. The ties with Russia have weakened considerably in the wake of the 2008 Russo-Georgian war but remained significant. Russia was the primary market for imports of staple foods into Georgia, such as wheat flour, maize, buckwheat, edible oils, etc. Russia and Ukraine were both important export markets for Georgia. Russia was absorbing about 60 percent of Georgian wine exports and 47 percent of mineral water exports, while Ukraine was one of the leading importers of alcohol and spirits from Georgia (46 percent of Georgia’s exports). Tourism and remittances are other areas where Georgia is significantly tied to Russia and somewhat weaker to Ukraine. Before the pandemic, in 2019 Russia accounted for 24 percent of all tourism revenues, while Ukraine for 6 percent. Remittances from Russia accounted for 16.5 percent of total incoming transfers in 2021.
- Second, while the Georgian government chose to largely keep a neutral stance on the war (announcing at one point that they would not join or impose sanctions against Russia), the main financial and trade international sanctions were still in effect in Georgia due to international obligations and close business ties with the West. These factors were reinforced by strong support for Ukraine among the Georgian population, where the memory of the Russian invasion of Georgia in 2008 remains uppermost.
- In addition, Georgia is a net energy importer, and while the dependence on energy imports from Russia is not significant, the rising prices would have affected Georgia profoundly.
Original publication: This policy paper was originally published in the ISET Policy Institute Policy Briefs section by Yaroslava Babych, Lead Economist of ISET Policy Institute. To read the full policy paper, please visit the website of ISET-PI.
Disclaimer: Opinions expressed in policy briefs and other publications are those of the authors; they do not necessarily reflect those of the FREE Network and its research institutes.
Homeownership and Material Security in Later Life

Many previous studies show that homeownership is related to various aspects of well-being, although the causal nature of this relationship is difficult to identify. We analyze the association between homeownership and material security, measured through subjective expectations of being better or worse off in the future, using data from 15 European countries. Our findings show that homeowners have a higher level of material security than renters, with larger differences among those living in big cities. We find that material security increases with the value of owner’s property and at the same time find no significant relationship with education, income or financial situation. We interpret the results as support for one of the most commonly emphasized mechanisms behind the positive effects of homeownership for well-being – that homeownership provides a particular form of material security in old age.
Introduction
Vast empirical literature links homeownership to numerous outcomes, such as well-being, health or mobility (Costa-Font, 2008; Dietz and Haurin, 2003; Rohe and Stewart, 1996 among others). In most cases the specific causal link with homeownership per se is however difficult to demonstrate. This because homeownership, especially in old age, usually reflects the financial resources accumulated over the life course through labor market history, as well as health and family developments (Angelini et al., 2013). This means that many unobservable characteristics can obscure the relationship between homeownership and welfare outcomes and bias the estimated parameters.
Material security is an important aspect of well-being, facilitating longer-term planning of financial decisions, smoothing of expenditures across periods of lower contemporaneous incomes and allowing exceptional spending when faced with various negative shocks. It seems particularly relevant in old age when people’s ability to adjust their current income to their specific needs is significantly reduced, and material needs increasingly depend on health. As people age and as their ability to maintain labor market activity diminishes, the material resources available to them, and the security these can provide, are increasingly composed of pensions and accumulated assets. Among the latter, fixed assets, and in particular ownership of one’s home, play a very special role, as they provide some financial backup and secure a flow of regular consumption in the form of accommodation.
It is reasonable to expect that homeownership would influence well-being through the channel of material security, particularly in old age. Surprisingly, the findings in the literature directly exploring this mechanism are so far scarce. We address this gap using data collected in the Survey of Health, Ageing and Retirement in Europe (SHARE) on individuals aged 50 years and above. We take advantage of the 2006 edition of the survey from 14 European countries and Israel and develop a measure of perceived future material security using two consecutive questions on ‘the chances that five years from now the standard of living [of the participant] will be better/worse than today’. Participants reported the estimated chances on a scale from 0 to 100, where 0 means ‘absolutely no chance’ and 100 denotes ‘absolutely certain’. In line with previous behavioral literature, we calculate a difference between the chances of being better vs. worse off, and recode into a categorical variable with 5 outcomes spanning from ‘very likely worse off’, through ‘rather likely worse off’, ‘equally likely’, ‘rather likely better off’ and ‘very likely better off’ (more details in Garten et al., 2022). In our sample, ‘equally likely’ is the most frequent category (30 percent of total responses), and being either ‘very’ or ‘rather likely worse off’ was more frequently reported than being better off (48 percent of total responses coded as either outcome for being worse off as compared to 22 percent for the two categories of being better off).
The Impact of Homeownership on Expectations of Future Standard of Living
We regress the measure of perceived material security on an extended vector of characteristics including basic demographics, education, marital status, labor market status, the relative position in the distributions of income and financial assets, and physical and mental health. Our main variable of interest is a categorical measure of homeownership, where individuals are split between renters and homeowners, who are further divided based on the country-specific quartiles of their home value. This measure is then interacted with being a big city resident. Below we present some selected results, which are reported in full in Garten et al. (2022).
In Figure 1 we report the results for each outcome of perception of material security for owner occupiers (depending on the value of their home) as compared to renters, by place of residence. The correlation with material security is particularly strong among those living in cities. However, among other respondents, those in the top quartile of the home value distribution are also more likely to report being optimistic about their material conditions in the future. For big city dwellers, the differences between renters and home owners are statistically significant already for owners with home values in the second quartile of the distribution, and the effects carry through to higher quartiles. The differences for selected perceptions of material security are not only statistically significant but also large in magnitude in the case of city dwellers who own the most expensive properties. As compared to renters they are 3.7 percentage points more likely to expect that their future situation will be either ‘rather’ or ‘very likely’ better. Among those living in big cities, 17.5 percent and 8.5 percent respectively, declare these positive expectations. This means that proportionally, the estimated 3.7 percentage points correspond to respective increases of 21.2 percent and 43.3 percent.
Figure 1. Marginal effects of homeownership for outcomes of perception of material security

Note: Results presented as marginal effects based on estimations using the ordered probit model with 95% confidence intervals. More details available in Garten et al. (2022).
We relate the marginal effect of owning a property in the top quartile of the home value distribution, as compared to owners with properties in the bottom quartile or renters, to the effect resulting from: higher education, being in the top income quartile or in the top financial assets quartile. While education, income and financial assets affect the perception of future material situation in the expected direction, the estimated relationships are statistically insignificant, and their magnitude is much lower compared to the estimated relationship with homeownership.
Conclusion
Relative to renters, individuals owning their homes tend to have higher levels of well-being across numerous dimensions (see Garten et al., 2022 for an overview). Due to the complex nature of the accumulation of wealth and its interaction with different spheres of life over the life cycle, the identification of the causal character of this relationship is a nearly impossible task. Although many mechanisms behind this relationship have been suggested, few have actually been put to the test against real-life data. Therefore, better understanding of these mechanisms might be a way to verify the hypothesis that homeownership actually matters for well-being.
Our findings confirm that homeowners – in particular those living in big cities – enjoy a higher level of self-perceived material security and are more likely to express optimism about their material standard of living in the future as compared to renters. Such feeling of security for the coming years may contribute to a more general positive outlook, and consequently to the higher reported levels of well-being and life-satisfaction observed in the literature. The examined relationship is especially strong among those in the top quartile of the distribution of property values, although for dwellers in big cities the effect is also strong for those with lower property value. While these findings cannot be interpreted as strictly causal, we suggest that owning a home offers a very particular type of material security in old age and that this security might be an important mechanism leading to the observed positive relationship between homeownership and overall well-being.
Acknowledgement
The authors wish to acknowledge the support of the German Science Foundation (DFG, project no: BR 38.6816-1) and the Polish National Science Centre (NCN, project no: 2018/31/G/HS4/01511) in the joint international Beethoven Classic 3 funding scheme – project AGE-WELL. For the full list of acknowledgements see Garten et al. (2022).
References
- Angelini, V., Laferrère, A., and Weber, G. (2013). Home-ownership in Europe: How did it happen?, Advances in Life Course Research, 18(1), pp. 83–90.
- Costa-Font, J. (2008). Housing assets and the socio-economic determinants of health and disability in old age, Health & Place, 14(3), pp. 478–491.
- Dietz, R. D. and Haurin, D. R. (2003). The social and private micro-level consequences of homeownership, Journal of Urban Economics, 54(3), pp. 401–450.
- Garten, C., Myck, M., and Oczkowska, M. (2022). Homeownership and the Perception of Material Security in Old Age, SSRN Electronic Journal. doi:10.2139/ssrn.4196268.
- Howden-Chapman, P. L., Chandola, T., Stafford, M., and Marmot, M. (2011). The effect of housing on the mental health of older people: the impact of lifetime housing history in Whitehall II, BMC Public Health, 11(1), p. 682.
- Rohe, W. M., and Stewart, L. S. (1996). Homeownership and neighborhood stability, Housing Policy Debate, 7(1), pp. 37–81.
Disclaimer: Opinions expressed in policy briefs and other publications are those of the authors; they do not necessarily reflect those of the FREE Network and its research institutes.
Rewarding Whistleblowers to Fight Corruption?

Whistleblower reward programs, or “bounty regimes”, provide financial incentives to witnesses that report information on infringements, helping law enforcement agencies to detect/convict culprits. These programs have been successfully used in the US against procurement fraud and tax evasion for quite some time, and were extended to fight financial fraud after the recent crisis. In Europe there is currently a debate on their possible introduction, but authorities appear much less enthusiastic than their US counterparts. In this brief, we discuss recent research on two commonly voiced concerns on whistleblower rewards – the risk of increasing false accusations, and that of crowding out other motivations to blow the whistle – and the adaptations these programs may need to fight more general forms of corruption. Research suggests that the mentioned concerns can be handled by an appropriate design and management of the programs, as apparently done in the US, and that these programs can indeed be a cost effective instrument to fight corruption, but only in countries with a sufficient quality of the judicial system and administrative capacity. They may instead be problematic for weak institutions environments.
Corruption and fraud seem to remain highly widespread in almost all countries. For example, a recent survey of over 6,000 organizations across 115 countries shows that one in three organizations, both worldwide and in the US, experienced fraud in the past 24 months, prevalently in the form of asset misappropriation, cybercrime, corruption, and procurement and accounting fraud (Global Crime Survey, 2016).
Whistleblower (protection and) reward programs are a possibly effective tool to combat fraud and corruption, at least in the light of the US successful experience, where for a long time whistleblowers reporting large federal fraud have been entitled to up to 30% of recovered funds and sanctions under the False Claims Act. The US Internal Revenue Service (IRS) also allows whistleblower rewards in the tax area, and the Dodd-Frank Act introduced them for financial and securities fraud, apparently also with success (c.f. Call et al., 2017, and Wilde, 2017).
In Europe and the rest of the world, instead, rewards are absent and whistleblowers are still poorly protected from retaliation from employers. Some countries have taken encouraging legal steps to at least improve protection, and a discussion is ongoing at the G20 level on how to further improve the situation (G20 report, 2011).
Although many praise whistleblowers, there has been a large range of objections raised against introducing rewards (and even against improving whistleblower protection); mostly by corporate lawyers and lobbyists, but also by regulatory and law enforcement agencies (see Nyreröd and Spagnolo, 2017, for an overview).
In the rest of this brief, we focus on two often voiced concerns, the risks of eliciting false/fraudulent reporting and of crowding out of non-financial motivation, on which recent research has shed light that should be taken into account in the current policy debate. We then discuss some problems linked to the use of whistleblower rewards programs in a more general corruption context.
Fraudulent reports
One concern commonly raised in the discussion of whistleblower rewards is that they may create incentives to fraudulently report false or fabricated information in the hope of receiving a reward. Although clearly an important concern to take into account, we only know of very few anecdotal cases of malicious or false reporting, and fraudulent reporting does not appear to have been a major problem in the US (see again Nyreröd and Spagnolo, 2017 for an overview of the empirical evidence).
A recent paper by Buccirossi, Immordino and Spagnolo (2017) analyzes this concern within a formal economic model and shows that it is not a ground (or an excuse) for not introducing appropriately designed and managed protection and reward programs in countries with sufficiently effective court systems. In these countries, stronger sanctions against lying to the court can (and should) be introduced to balance the incentives for manipulation that may be generated by large bounties. Most legal systems already have defamation and perjury laws, which means that a whistleblower is already committing a crime by fraudulently reporting false information, that can easily be strengthened where necessary without giving up whistleblower rewards. According to this study, the balancing of incentives is what allows the US to effectively use large financial incentives for whistleblowers, besides a very strong protection from retaliation, with little problems in terms of fraudulent reports.
However, the study also shows that this is only possible if the precision (effectiveness, independence) of the court system is sufficiently high. Where court systems are imprecise, the interaction between courts’ mistakes in the legal case based on the information reported by the whistleblower and in the following case for perjury/defamation against the whistleblower if the first case is dismissed, incentives for fraudulent reports, and courts’ adaptation of the standard of proof to account for these incentives, make it impossible to appropriately balance the two incentives. Therefore, whistleblower reward programs should not be introduced in environments where the law enforcement system is ineffective, independently from why it is so (bureaucratic slack, incompetence, political interference, corruption, etc.).
Crowding-out non-financial motivation
Another concern is that whistleblower rewards may have a “crowding out” effect on intrinsic motivation. The problem is that “the commodification of whistleblowing via the provision of bounties may render would-be whistleblowers less likely to come forward by reducing the moral valance of the wrongdoing” (Engstrom, 2016:11). Recent experimental evidence suggests that this concern is overstated. In particular, Schmolke and Utikal (2016) investigate the effects of whistleblower rewards in an environment where one subject may increase his payoff at the cost of harming the group, and find rewards to be highly effective in increasing the number of crimes reported. Data from that experiment suggests a little role for crowding out of non-monetary motivation, if any. Another recent study by Butler, Serra and Spagnolo (2017) investigates if and how monetary incentives, expectations of social approval or disapproval, and the salience of the harm caused by the reported illegal activity interact and affect the decision to blow the whistle. Experimental results show that financial rewards significantly increase the likelihood of whistleblowing and do not substantially crowd out non-monetary motivations activated by expectations of social judgment. The study also finds that public scrutiny and social judgment decrease (increase) whistleblowing when the public is less (more) aware (aware) of the negative externalities generated by the reported crime. All in all, most the recent studies we are aware of suggest that crowding-out of non- financial concerns is not a first-order problem for whistleblower reward schemes as long as there is a clear perception of the public harm linked to the illegal behavior reported by the whistleblower.
Whistleblower rewards and corruption
Although whistleblowing can occur in any sector, firm, or government, an area of particular interest is corruption. Corruption in public procurement is estimated to cost the EU 5.3 billion Euros annually. Hence, corruption deterrence through increased whistleblowing could save the EU significant resources annually (EC Report, 2017).
Contrary to fraud, corruption always takes at least two parties, a bribe taker, typically a government official or politician, and a bribe giver, which may be a firm or an individual. The fact that at least one additional party is involved than in the standard case of fraud, should make whistleblower rewards programs even more powerful since they may deter corruption by increasing the fear that a (potential or real) partner in crime may blow the whistle, even when no third party witness observes the illegal act (Spagnolo, 2004).
When the reported wrongdoer is an individual, as is often the case with corruption, there may be an issue in the use of rewards for whistleblowers linked to the funding of the rewards (c.f Nyreröd & Spagnolo, 2017b for an overview).
In the current US schemes, rewards for whistleblowers are ‘self-financing’, as they constitute a fraction of the funds recovered thanks to the whistleblower or/and of the fines paid by the culprits. An individual and a government official involved in a corrupt deal may, however, not be wealthy enough for the fines and the recovered funds to amount to a sufficiently strong incentive to blow the whistle, given the loss of future gains from the corrupt relationships and the various forms of retaliation whistleblowing may lead to. This problem is of course also relevant for fraud when an individual with few or well-hidden assets is the culprit, rather than a corporation, but it seems particularly relevant for corruption.
Whistleblower reward programs are also malleable to the concerns at hand. If the priority is to combat higher-level corruption, then setting a monetary threshold for when a claim is to be considered is appropriate to limit administrative costs for the program. Indeed, a concern with utilizing whistleblower rewards programs for combating lower-level corruption is that the administrative burden required looking through the whistleblower claims and the costs of limiting abuses may outweigh the benefits gained in detection and deterrence. This concern is also valid for small fraud and tax evasion, which is why all the US programs have a minimum size for cases eligible to whistleblower rewards, but the problem is likely to be more relevant to the case of ‘petty’ corruption. These programs are more suited for ‘large cases’ in which the amount of funds recovered is large enough to pay for rewards and administrative costs, making these programs self-financing even without calculating the benefits for the deterrence/prevention of future infringements. However, when focusing on large corruption cases, other issues become relevant.
An issue particularly important for the case of ‘grand’ corruption is how independent the judicial system is from political pressure, and how able it is to protect whistleblowers against politically mandated retaliation. If corrupt politicians can importantly influence courts, the police or other relevant administrative agencies, then protection can hardly be guaranteed and inducing witnesses to blow the whistle through financial incentives may put their life at risk, although sufficiently large rewards can partly compensate for this risk and help escaping part of the retaliation.
Conclusion
On the whole, whistleblower rewards, in general and in the corruption context specifically, remain a promising tool to detect and deter crime. Careful design and implementation are necessary, because as for any powerful tool, these programs can be well used to do great thing, but also misused to do great damage. As the US experience has shown, along with sufficiently independent and precise courts and an effective administration of law enforcement, well designed and administered whistleblower reward programs hold the promise of greatly improving fraud and corruption detection and of being self-financing through recovered funds and fines.
Of course, even in a very good institutional environment, a poor design and/or implementation can lead to poor performance and do more harm than good (c.f. the case of leniency policies in China discussed in Perrotta et al., 2017). Moreover, in poor institutional environments, where the court system is not sufficiently precise and independent and other law enforcement institutions are not effective, even well-designed and implemented whistleblower reward schemes may bring more problems than benefits. Whistleblower rewards, as any other high-powered incentives, need good governance to ensure that the potentially very high benefits they can generate will be realized. Third parties like international courts and organizations could potentially provide for some low institution environments, the independent safe harbor necessary to protect whistleblowers and a check on court effectiveness for the award of financial incentives.
References
- Global Economic Crime Survey, 2016. Available at: https://www.pwc.com/gx/en/economic-crime-survey/pdf/GlobalEconomicCrimeSurvey2016.pdf
- Buccirossi, P., Immordino, G., and Spagnolo, G., 2017. “Whistleblower Rewards, False Reports, and Corporate Fraud”. SITE Working Paper No. 42, available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2993776
- European Commission Report, 2017. Estimating the Economic Benefits of Whistleblower Protection in Public Procurement, Milieu Ltd.
- Engstrom, D., 2016. “Bounty Regimes”, in Research Handbook on Corporate Criminal Enforcement and Financial Misleading (Jennifer Arlen ed., Edward Elgar Press, forthcoming 2016)
- Butler, J., Serra, D., and Spagnolo G., 2017. “Motivating Whistleblowers.” Unpublished manuscript. Available at: https://www.aeaweb.org/conference/2017/preliminary/1658
- Schmolke, K.U., Utikal, V., 2016. “Whistleblowing: Incentives and Situational Determinants.” FAU – Discussion Papers in Economics, No. 09/2016. 2016. Available at: https://ssrn.com/abstract=2820475
- Call, A.C., Martin, G.S, Sharp, N.Y., Wilde, J.H., 2017. “Whistleblowers and Outcomes of Financial Misrepresentation Enforcement Actions.” Journal of Accounting Research, forthcoming.
- Wilde, J.H., (2017). “The Deterrent Effect of Employee Whistleblowing on Firms’ Financial Misreporting and Tax Aggressiveness”, The Accounting Review, forthcoming.
- Nyreröd, T. Spagnolo, G., 2017a “Myths and evidence on whistleblower rewards”, SITE Working Paper No.
- Spagnolo, G., 2004. “Divide et Impera: Optimal Leniency Programs.” CEPR Discussion Papers 4840, 2004.
- Nyreröd, T. Spagnolo, G. 2017b. “Whistleblower Rewards in the Fight against Corruption?” (in Portuguese), forthcoming in the book Corrupção e seus múltiplos enfoques jurídi
- Berlin-Perrotta, M., Qin, B. and Spagnolo, G., 2017. “Leniency, Asymmetric Punishment and Corruption: Evidence from China,” SITE Working Paper. Available at:https://ssrn.com/abstract=2718181 or http://dx.doi.org/10.2139/ssrn.2718181
- G20 Anti-Corruption Action Plan, Protection OF Whistleblowers Study on Whistleblower Protection Frameworks, Compendium of Best Practices and Guiding Principles for Legislation, 2011. Available at: https://www.oecd.org/g20/topics/anti-corruption/48972967.pdf
- Wolfe S., Worth M., Dreyfus S., Brown A.J., 2015. Breaking the Silence, Strengths and Weaknesses in G20 Whistleblower Protection Laws, 2015. Available at: https://blueprintforfreespeech.net/wp-content/uploads/2015/10/Breaking-the-Silence-Strengths-and-Weaknesses-in-G20-Whistleblower-Protection-Laws1.pdf
Examining Social Exclusion among the 50+ in Europe – Evidence from the Fifth Wave of the SHARE Survey

Though intuitive, the concept of social exclusion is complex and hard to measure. Recently, however, we have witnessed policymakers and international institutions increasingly pay attention to better understand material and social distress and to identify the means to improve a broadly defined standard of living. In this brief, we summarize some of the results and conclusions from a recently published First Results Book based on the latest data from the Survey of Health, Ageing and Retirement in Europe (SHARE). We discuss the approach adopted to measure material and social deprivation, and the subsequent identification of risk of social exclusion. We show that Europeans increasingly value the quality of their social life as they grow older and that factors, such as worsening health, unmet long-term care needs, loneliness or lack of social cohesion are important determinants of social exclusion among the 50+ population. If socio-economic policies are to respond effectively to the needs of older Europeans, then broader aspects of their lives need to be taken into account and public policy should go beyond simple targets of income-defined poverty.
The Survey of Health Ageing and Retirement in Europe (SHARE) is an international research project focused on the European 50+ population, and combines information on key areas of life including health, labour market activity, financial situation, social involvement as well as family and social networks. The fifth wave of this panel study took place in 2013 with detailed interviews conducted in 15 European countries. The survey included a special set of questions aiming to improve the understanding of the degree of financial difficulties faced by the 50+, and to address the question of the extent of social exclusion in different European countries. The First Results Book documenting details of the survey has just been published by the international research team involved in the SHARE project. In this brief, we discuss some key results reported in this publication with focus on the analysis of deprivation and social exclusion in Europe among the 50+.
Capturing a Complex Concept of Social Exclusion in Socio-Economic Data
In recent years, the notion of “social exclusion” has been gaining importance as a reference in academic and policy circles with regards to the goals and conduct of socio-economic policy. In fact, in the Europe 2020 strategy, the European Union has made a formal commitment to “recognise the fundamental rights of people experiencing poverty and social exclusion, enabling them to live in dignity and take an active part in society” (European Commission, 2010). Yet, while the concept has an intuitive appeal, the approach to its measurement and analysis has been far from formalised and continues to leave room for a high degree of arbitrariness. This flexibility in the treatment of social exclusion, given the nature of the concept, may seem necessary and in fact desired, but at the same time requires a lot of care at the level of analysis and caution with regard to conclusions drawn from it.
The recent increase in the popularity of broad measures of financial circumstances, going beyond the simple income-based poverty indicators, reflects a number of limitations of the latter as far as it reflects overall material conditions and welfare of individuals. These limitations may be particularly important in the case of older individuals, for whom material wellbeing will be strongly affected by health status or disability, as well as by the extent of accumulated assets at their disposal (e.g. Laferrère and Van den Bosch, 2015; Bonfatti et al., 2015). With this in mind, the fifth wave of the SHARE survey was enriched with a set of additional questions aimed at identifying different sources of deprivation that 50+ individuals are especially exposed to. Based on available data we developed two SHARE-specific measures to assess material and social aspects of deprivation, which were further combined into a single indicator of social exclusion. 13 items from the SHARE questionnaire, exploring affordability of basic needs and financial difficulties among SHARE respondents, were brought together into an aggregate indicator of material conditions (Bertoni et al. 2015). The measure of social deprivation was derived from 15 SHARE items investigating social isolation, quality of neighbourhood and social involvement (Myck et al. 2015). In both cases, so-called hedonic weights were applied to individual items (weights based on the relationship of deprivation items with life satisfaction measure). Based on the threshold of the 75th percentile of total distribution of each of the two indices, individuals with high levels of deprivation in both dimensions were classified as at risk of social exclusion. The scientific value of developed measures has been validated by Najsztub et al. (2015), who found a good compliance in the cross-country variation of material and social deprivation and with common welfare indicators, such as the Human Development Index or income per capita.
Ageing and Social Exclusion among Older Europeans
Comparing material and social deprivation between those aged 50-64 years old and respondents aged 65+ shows that while the level of social deprivation is higher for the older group, the opposite is true for material deprivation (Myck et al. 2015). This suggests that social deprivation grows with age; on the one hand because of increased isolation of older people, and on the other, because older individuals may value their social circumstances more. This conclusion is supported in Shiovitz-Ezra (2015), who reports that, with regards to loneliness, social cohesion and neighbourhood quality play an increasingly important role among older respondents.
Figure 1 Proportion of Individuals at Risk of Social Exclusion by Country
When analysing country variation of the two-dimensional indicator of being at risk of social exclusion, we can see that the proportion of the 50+ population exposed to this risk is the highest in Estonia (27.1%), Israel (25.5%) and Italy (23.1%; see Figure 1). On the other hand, countries with the lowest proportion of individuals at risk of social exclusion are Denmark, Sweden and Switzerland. In these countries the proportion is lower than 4%. Naturally, there is important variation in the risk of exclusion also within countries. For example, the results of Hunkler et al. (2015) show that compared to a native born, migrants suffer much higher degree of exclusion in their present country, which, to a lesser extent, is also true for their children.
An analysis of factors that affect the risk of social exclusion reveals that higher education, being employed or retired, and living with a partner substantially limit this probability (Myck et al., 2015). There is also a strong correlation between social exclusion and poor health status. Older people in poor health and those with limited ability to carry out activities of daily living are more vulnerable to both material and social deprivation (Laferrère and Van den Bosch, 2015). People requiring long-term care but reporting unmet needs in this domain are more likely to suffer from deprivation in the social dimension. Importantly from a policy point of view, Bertoni et al. (2015) provide evidence that eyesight and hearing loss contribute to a higher probability of social exclusion, and among the oldest old lead to reduced actual social participation.
Conclusion
Since the importance of different aspects of social life increases when people grow older, policy instruments targeted at income-defined poverty will be ineffective in addressing important aspects of older people’s welfare. It therefore seems important that broader aspects of everyday life are taken into account when constructing socio-economic policies aimed at reducing social exclusion among older Europeans.
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References
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