Demographic dividend

Concept:  Demographic dividend
Topic: Demographic dividend
Category: Economy
Related News: Various sources, May 1
CNA mentions: 1(May 1)                                                                                

Demographic dividend

Demographic dividend refers to a period – usually 20 to 30 years – when fertility rates fall due to significant reductions in child and

Demographic dividend is the period when the rates of fertility come down due to great curtailment in the child and infant mortality ratios. This period usually lasts for twenty to thirty years. As families and women start to realize that fewer children would die during childhood or infancy, they begin to produce fewer children so that the desired number of offspring is reached. This further reduces the proportion of dependents that are non-productive. This reduction is coincided by an increase in the average life expectancy which raises the portion of the working age-group population.

The United Nations Population Fund defines the demographic dividend as the economic growth potential that arises out of shifts in a population’s structure of age, especially when the working-age population share (15-64) is greater than the non-working age share which is younger than 24 and more than 64 years.