More and more international students stay on after graduation to live and work in the Netherlands. The taxes they subsequently pay more than offset the costs of their education and student financing, CPB reports today.
This holds true for students from both Europe and beyond, whether they attend a university of applied sciences or a research university. Around one in five European students are still living in the Netherlands five years after graduating, CPB writes. Among students from outside Europe, the figure is closer to two in five.
Now and later
In the short term, international students bring both benefits and challenges. While they can help ease labour shortages, they also add to demand for housing in an already tight housing market.
Over the longer term, however, CPB researchers expect “no significant effects on either the labour or housing market”, while highlighting international students’ potential contribution to innovation and strengthening international ties.
Costs and benefits
The Dutch government funds degree programmes and student financing for Dutch students, and does the same for European students. The public costs involved are considerable. Although some international students remain in higher education, whether studying for a Bachelor’s or Master’s degree, in the Netherlands longer than others, average government spending amounts to 32,500 euros per student at a university of applied sciences and 20,600 euros per student at a research university.
However, these costs are recouped over the years. CPB takes into account spending on healthcare and social security, among other things, and weighs these costs against the revenues generated by international students and the likelihood that they will remain in the Netherlands after graduation. A European student at a university of applied sciences delivers a net benefit of 13 thousand euros to the treasury, while a European student at a research university contributes 82.5 thousand euros.
Students from outside Europe cover the full cost of their studies themselves. Any taxes they pay therefore represent a net gain for the government. That contribution begins with the part-time jobs many hold while studying. On average, those attending universities of applied sciences generate 117 thousand euros for the Dutch state, while research university graduates generate 243 thousand euros.
Similar conclusion in 2012
CPB reached a similar conclusion in 2012. At the time, politicians expressed concern about the growing influx of German students into the Netherlands, while relatively few Dutch students chose to study in Germany.
Halbe Zijlstra, outgoing state secretary at the time, was pleasantly surprised by CPB’s calculation and revised his position on international students. “We cannot ask other EU countries whether they would be willing to pay for students who benefit us economically. That would be difficult to justify.”
More positive about migration
As the world cannot be measured in economic terms alone, CPB also considers the ‘broader effects’ of internationalisation, with researchers pointing to the value of English-taught programmes as well as the merits of Dutch-taught education.
In any event, international students have no demonstrable effect on Dutch students’ academic success or employment prospects. “But increased contact with international students does appear to lead to stronger international social ties and more positive attitudes towards migration”, CPB writes.
Brain drain
Another argument against internationalisation is that young people from distant (and poorer) countries might be better off putting their talents to use in their own country: doesn’t this constitute a brain drain? CPB offers a more nuanced assessment: according to the researchers, it can be beneficial for both sides.
There are indeed both gains and losses: brain gain and brain drain. But talented migrants can be more productive in more developed economies, CPB reasons, and the loss to their country of origin can be “partially offset if, for example, they send money to their families”. In addition, those countries can also benefit from trade relationships and from highly educated graduates who eventually return home.