As discussions about reducing international student numbers in Dutch universities continue, our research explores whether Dutch graduates benefit from diverse classrooms in their career trajectories. The findings indicate a clear advantage: Dutch students who study in more international environments start their careers with a wage premium, which tends to increase over time. These results highlight the long-term value of global exposure in higher education and suggest that limiting international classrooms may negatively impact Dutch graduates' competitiveness in the job market.
A competitive edge
Through a literature review, our research investigates whether exposure to peers from diverse linguistic and cultural backgrounds provides native students with a competitive edge. Two key skills stand out. The first skill is English proficiency. As the lingua franca of global business, English fluency is essential, especially in an export-driven economy like the Netherlands. Students frequently attribute their confidence in presenting and negotiating in English to the discussions and collaborations they had with international peers. The second skill is intercultural competence. The ability to communicate effectively across cultures enhances workplace collaboration and productivity. Graduates who have worked in diverse teams during their studies are better equipped to navigate different business styles, making them more adaptable and effective in multinational settings.
Measuring the impact on career prospects
To assess whether international exposure during university studies influences career outcomes, we analysed Dutch students who obtained master’s degrees between 2006 and 2014. The study divided them into two groups: one with students from highly international classrooms and another with students from less diverse environments. By ensuring that the two groups were comparable in demographics, household background, and prior education, we isolated the impact of international classroom exposure on career success.
The results support our hypothesis. Dutch graduates from more international classrooms earned, on average, 2.3% more in their first year of employment than their peers from less diverse backgrounds. Over the next five years, this wage premium grew by approximately 1% per year, reinforcing the long-term benefits of an international educational environment.
‘International peers play a crucial role in equipping native students with skills that open doors to high-paying careers’
Long-term advantages
Our research explored three possible explanations for this wage advantage. The first was initial job placement. Graduates from international classrooms tend to secure roles in larger, often more multinational firms in export-focused industries, where global skills are highly valued. Secondly, we looked at career advancement speed. While both groups may start in similar companies, those with international experience may climb the corporate ladder more quickly due to their enhanced skills. Lastly, a possible explanation was job mobility. Graduates with intercultural competence may leverage their skills to transition between firms, negotiating better salaries along the way.
Our empirical evidence points primarily to the first mechanism: students from international classrooms are more likely to secure better-paying jobs immediately upon graduation. The skills they develop in diverse university settings, such as English proficiency and intercultural competence, help them enter career paths with stronger long-term earning potential.
Rethinking the value of international classrooms
Current policy discussions often focus on limiting international students to protect Dutch graduates’ job prospects. However, our findings suggest a different perspective: international peers play a crucial role in equipping native students with skills that open doors to high-paying careers.
By embracing global classrooms, we empower Dutch graduates to compete in an increasingly interconnected job market. Reducing international diversity in higher education could, paradoxically, limit the very opportunities that policymakers seek to protect.
Zhiling Wang is an assistant professor in the Department of Applied Economics at Erasmus School of Economics. Her research interests are in policy evaluation, migration, and firm strategy.
Bas Karreman is an associate professor in the Department of Applied Economics at Erasmus School of Economics. His research interests are in firm organisation and emerging markets.
Frank van Oort is Professor of Urban & Regional Economics at Erasmus School of Economics. His research interests are in policy evaluation and urban economics.
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This item is part of Backbone Magazine 2025. The magazine can be found in E-building or Theil-building for free. Additionally, a digital copy is available here. Backbone is the corporate magazine of Erasmus School of Economics. Since 2014, it is published once a year. The magazine highlights successful and interesting alumni, covers the latest economic trends and research, and reports on news, events, student and alumni accomplishments.
