Cap on international students could cost Dutch economy up to €5 billion

A new study warns that limiting the number of international students at the five comprehensive Randstad universities could slash the Dutch economy by €4–5 billion. The Randstad region, home to half of the country’s GDP, would bear the brunt, accounting for 82% of the total loss. Business services, finance, and the public sector are expected to be the most affected.

Research by SEO Economic Research, commissioned by Leiden University, Utrecht University, Erasmus University Rotterdam, University of Amsterdam, and Vrije Universiteit Amsterdam, highlights the wider consequences. “International students strengthen the earning capacity of the Netherlands,” the report notes, emphasizing their role in reducing labor shortages in business services, finance, healthcare, government, and education.

The retention of graduates has risen in recent years. One year after graduation, 57% of international students from the 2022–2023 cohort remained in the Netherlands, up from 40% in 2017–2018. After five years, 25% still live in the country, with 80% of them employed. Regions outside the Randstad also benefit through employment and supporting services.


Government cap on international students
Earlier this year, the outgoing Dutch cabinet introduced a cap on international students at the five comprehensive Randstad universities under the “Internationalization in Balance Act” (Wet Internationalisering in Balans – WIB). The restrictions aim to limit student numbers in programs at Leiden, Utrecht, Erasmus Rotterdam, Amsterdam, and Vrije Universiteit Amsterdam, and they came into effect this academic year.

The study finds that the cap would save only €80–132 million annually from a national budget of roughly €488 billion. This includes education funding, student finance, and social provisions of €735–825 million, offset by lost tax and premium revenues of €603–745 million. However, the economic damage—impacting GDP, labor markets, and the business climate—would total €3.9–4.8 billion per year.

Fewer international students may also weaken the business climate. “30% of companies employing many foreign knowledge workers are considering relocating growth plans or activities abroad if they cannot attract sufficient talent,” the report says. This could reduce investment, jobs, and innovation capacity in the Netherlands.

The report also highlights education quality concerns. With fewer international students, Dutch classrooms may lose international perspectives, language skills, and intercultural competencies that prepare students for a global labor market.

The study, titled 'Out of Balance Without Internationalization?', provides a quantitative analysis of the economic impact of the cap under the WIB. It underscores the importance of a balanced internationalization policy for the country’s regions, economy, and higher education system.