Dependency Ratio
The dependency ratio is a demographic measure that compares the size of the economically dependent population (children and elderly) to the working-age population. It provides insight into the potential burden on the working population to support dependents. A high dependency ratio can strain social welfare systems and economic productivity, while a low ratio may indicate a more favorable demographic structure.
3 Key excerpts on "Dependency Ratio"
eBook - ePub- Mark Novak(Author)
- 2018(Publication Date)
- Routledge(Publisher)
...The elderly Dependency Ratio refers to the number of people age 65 and over divided by the population ages 18 to 64, multiplied by 100. The youth Dependency Ratio refers to the number of people ages 0 to 17 divided by the population ages 18 to 64, multiplied by 100. These ratios show how these two subgroups contribute to the total Dependency Ratio (Ortman et al., 2014). Figure 3.9 gives a summary of recent changes in the Dependency Ratios in the United States. Key Terms total Dependency Ratio number of people age 0 to 17 plus people age 65 and over divided by the population ages 18 to 64, multiplied by 100 elderly Dependency Ratio number of people age 65 and over divided by the population ages 18 to 64, multiplied by 100. youth Dependency Ratio the number of people ages 0 to 17 divided by the population ages 18 to 64, multiplied by 100. Figure 3.9 Dependency Ratios for the United States: 1940 to 2050 Source: Ortman, Jennifer M., Victoria A. Velkoff, and Howard Hogan. (2014). An Aging Nation: The Older Population in the United States, Current Population Reports, P25–1140. U.S. Census Bureau, Washington, DC. 2014, Figure 3.5, p. 9. Original source U.S. Census Bureau. 1940 to 2012 Population Estimates and 2012 National Projections. Reprinted with permission. These figures provide an indication of how many people in the general population exist to support younger and older people in the population. Note that the composition of the total ratio changes over time. In 1980, young people made up about three-quarters (71 percent) of the total ratio. This means that in 1980, compared to older people, younger people (by this measure) required more support from the middle-aged population. By the middle of this century (2050), older people will make up almost half of the total Dependency Ratio. Older people will have almost doubled in their need for support from the middle-aged population between 1980 and 2050...
eBook - ePubChallenges On the Path Toward Sustainability in Europe
Social Responsibility and Circular Economy Perspectives
- Vesna Zabkar, Tjaša Redek, Vesna Žabkar, Tjaša Redek(Authors)
- 2020(Publication Date)
- Emerald Publishing Limited(Publisher)
...We again assume the age patterns of consumption and production to stay the same over time. RESULTS Demographic Dependency Table 1 first shows the demographic Dependency Ratio defined as a number of people aged 0–19 and 65+ relative to the number of people aged 20–64 projected for years 2020, 2040, and 2060. The conventional demographic indicator is interesting both in its initial value and the relative change over the projection period. The Dependency Ratio in 2020 ranges from 56.2 in Luxembourg, 59.1 in Slovakia, and 59.3 in Cyprus to 80.1 in France, 76.9 in Finland, and 76.5 in Sweden, indicating that countries have very different initial age structure of the population. Low Dependency Ratios by countries are driven by the pronounced share of people in working age or/and low fertility, whereas the high levels are driven by relatively high fertility and high longevity. In the future, the Dependency Ratio is projected to increase in all countries because of increasing share of people aged 65+ and decreasing share of working age people. In all countries, the share of young (aged 0–19) does not change much during the projection period and therefore has only small impact on the changes in Dependency Ratio. In Luxembourg, the Dependency Ratio remains among the lowest over the entire projection period, whereas in Slovakia it strongly increases, so Slovakia ends up as a country with one of the highest value of demographic Dependency Ratio. This increase is explained with rapidly increasing longevity and very pronounced generations of baby-boomers entering the age group 65+. The same explanation holds for increasing Dependency Ratio in most other countries. NTA Dependency Ratio Once we introduce actual age patterns of labor income and consumption by age, the results change considerably. According to the NTA support ratio indicator, countries with the highest NtaDR in 2020 are Greece, Romania, and Lithuania...
eBook - ePubChina's Ethnic Minorities
Social and Economic Indicators
- Rongxing Guo(Author)
- 2013(Publication Date)
- Routledge(Publisher)
...Sometimes it is substituted by the mid-year population. “Death rate” (or “crude death rate”) refers to the ratio of the number of deaths to the average population (or mid-period population) during a certain period of time (usually a year), expressed in ‰. Death rate in the chapter refers to annual death rate. The following formula is used: “Natural growth rate of population” refers to the ratio of natural increase in population (number of births minus number of deaths) in a certain period of time (usually a year) to the average population (or mid-period population) of the same period, expressed in ‰. The following formula is applied:, where: GDR is the gross Dependency Ratio, P 0−14 is the population of children aged 0 –14, P 65+ is the elderly population aged 65 and over, and P 15– 64 is the working-age population aged 15–64. “Old Dependency Ratio,” also called old dependency coefficient, refers to the ratio of the elderly population to the working-age population, expressed in percent. It describes the number of elderly people that every 100 people at working age will take care of. Old Dependency Ratio is one of the indicators reflecting the social implication of population aging from the economic perspective. The old Dependency Ratio is calculated with the following formula:, where: ODR is the old P 15−64 Dependency Ratio, P 65+ is the elderly population aged 65 and over, and P 15– 64 is the working-age population aged 15–64. “Children Dependency Ratio,” also called children dependency coefficient, refers to the ratio of the child population to the working-age population, expressed in percent. It describes the number of children that every 100 people at working age will take care of. The children Dependency Ratio is calculated with the following formula:, where: CDR is the children Dependency Ratio, P 0-14 is the child population aged 0 –14, and P 15– 64 is the working-age population aged 15–64....
