CPB study: International students contribute more than they cost
At NHL Stenden, we strongly believe in the importance of internationalisation in education and research. A study by the Netherlands Bureau for Economic Policy Analysis (CPB) also shows that, over the course of their lifetime, international students make a positive contribution to Dutch public finances on average. The costs incurred by the government for international students, such as student grants and loans for students from the European Economic Area (EEA), as well as spending on social security and healthcare, are more than recouped on average.
Internationalisation is an important theme at NHL Stenden. The world is becoming increasingly diverse and international. That is why our university of applied sciences encourages students and staff to develop their knowledge of intercultural and global contexts. The benefits are clear to NHL Stenden, and it now appears that international students also make a positive contribution to the Dutch economy on average.
In this study, commissioned by the Dutch Ministry of Education, Culture and Science, the CPB mapped out the costs and benefits of incoming international students and updated its earlier analyses from 2012 and 2019. The study takes recent developments into account, including the sharp increase in the number of international students, changes to student finance and new data on the labour market and the likelihood of graduates staying in the Netherlands.
Positive contribution to public finances
The analysis shows that international students make a positive contribution to public finances on average. Although the government invests in students during their studies, particularly EEA students through higher education funding and student finance, these costs are recouped later through tax revenues.
The net contribution is positive for both EEA and non-EEA students, and for graduates from both universities of applied sciences (hbo) and research universities (wo). Graduates from research universities who come from outside the EEA make the largest contribution. This is because non-EEA students are more likely to stay in the Netherlands after graduating, while graduates from research universities earn more on average later in their careers and therefore pay more income tax. In addition, the government incurs lower costs for students from outside the EEA during their studies, as these students finance their studies entirely themselves.
More international students stay and work in the Netherlands
International students are increasingly likely to stay in the Netherlands after graduating. Five years after completing their higher education, around one in five EEA students and two in five non-EEA students still live in the Netherlands. These figures were approximately a quarter lower ten years ago. Recent international graduates also find paid employment more quickly than students who graduated in previous years. As a result, they start contributing to the Dutch economy and public finances sooner.
Source: Economic effects of incoming international students | CPB website
Internationalisation at NHL Stenden
The world is becoming increasingly diverse and international, and this is shaping the labour market. That is why we want our students and staff to understand the intercultural and global context of their studies.
