Investment In Human Capital Under Uncertainty: Ukrainian War Migrants In Dutch Labor Market

Human capital refers to the collective knowledge, skills, experiences, intelligence, training, and competencies possessed by individuals in a given population. It represents a valuable resource that can be addressed to achieve the goals and prosperity of a nation or a specific region. Well-educated and skilled individuals are more productive, leading to an increase of economic prosperity for a nation. Nowadays, the competition between countries is competition for people as they contribute to a nation's productivity, innovation, and economic growth. As a result, developed countries seek to attract and retain this human capital to remain competitive on a global scale. After Russia's invasion of Ukraine at the end of February 2022, the international armed conflict has led to civilian casualties and the devastation of civilian infrastructure, forcing individuals to leave their homes in search of safety, security, and support. Europe has welcomed millions of displaced Ukrainians, providing them with opportunities and support at a time when numerous European countries are facing significant labor shortages due to population aging. For successful integration in the local labor market migrants need to focus on enhancing their human capital. However, given the large uncertainty that Ukrainian refugees face increases the risk regarding the potential returns on their investment in education or skill development. This thesis aims to explore how factors of uncertainty might influence decisions regarding investment in human capital within the Ukrainian war migrant population.