The need to recognise the dynamic context of these questions is widely accepted – ‘in a
static set-up, one cannot fully grasp the implications of migration for the welfare state’
(Razin and Sadka, 1999, p. 148). Immigrants adapt to labour market expectations of the
receiving country as the duration of their stay extends, particularly in terms of linguistic
proficiency, and as a consequence earn more and pay more in taxes. Immigrants who
arrived when young set-up families, age, consume differently and make different
demands on public services. Many remain to raise later generations but some return to
their country of origin and do so possibly at differential rates according to their
contributions to public finances. Understanding of return intentions, which themselves
depend on regulations governing entitlement to remain, cannot be divorced from
understanding of long-term effects on the public exchequer. A common theme of
popular discussion is the plausibility of immigration as a long term solution to the
consequences of population aging and rising dependency ratios in recipient countries.
This is not an issue that can be plausibly addressed without considering these questions.