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Foreign Students Bring More Money to Dutch Economy Than They Cost, CPB Finds

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International students contribute more to Dutch public finances than the government spends on them, new research has found.

The Netherlands Bureau for Economic Policy Analysis, known as CPB, examined the costs and benefits of students who move to the Netherlands for higher education.

Government expenses include education, student finance, healthcare and social security.

CPB found that these costs are usually recovered because many international graduates remain in the Netherlands, find jobs and pay taxes.

The financial contribution differs according to the student’s country of origin and type of education.

A university graduate from outside the European Economic Area contributes about €243,000 to Dutch public finances over their lifetime.

A university graduate from an EEA country contributes about €82,500.

For graduates from universities of applied sciences, the estimated contribution is €117,000 for non-EEA students and €13,300 for EEA students.

The EEA includes the European Union, Norway, Iceland and Liechtenstein.

About 17 percent of students in the Netherlands during the last academic year came from another country.

Most were from the EEA. They pay the statutory tuition fee, which is €2,694 this year, and may qualify for student finance under certain conditions.

Students from outside the EEA usually pay the full cost of their education and cannot receive Dutch student finance. This means they cost the government less during their studies.

More graduates are also choosing to remain in the country.

Five years after leaving higher education, about one in five EEA graduates still lives in the Netherlands.

The figure rises to two in five for graduates from outside the EEA.

Both retention rates are about 25 percent higher than they were a decade ago.

CPB researcher Paul Verstraten said international graduates are finding jobs faster because the Netherlands has a shortage of workers.

The study found that international students add pressure to the housing market in the short term.

However, CPB said limiting their numbers would have little effect on the housing shortage over time. The long-term impact depends mainly on whether housing supply increases.

The previous government wanted to reduce international enrolment to save almost €300 million and reduce pressure on housing and public services.

The current education ministry allows universities and colleges to manage their own intake. It wants institutions to focus recruitment on sectors facing staff shortages, including engineering and healthcare.

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