Why are dependency ratios higher in aging populations?-February 2024-www.zdask.com

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Dependency Ratios in Aging Populations

Definition:

A dependency ratio is a demographic indicator that measures the number of dependents (typically children and elderly individuals) in relation to the working-age population. It is calculated by dividing the number of dependents by the number of individuals in the working-age population and multiplying the result by 100.

Why are dependency ratios higher in aging populations?

Dependency ratios tend to be higher in aging populations due to several factors:

Increase in the elderly population: Aging populations experience a higher proportion of elderly individuals who are no longer in the workforce. As people live longer, the number of retirees increases, leading to a higher dependency ratio.

Decline in birth rates: Aging populations often have lower birth rates, resulting in a smaller proportion of children in the population. With fewer children to support, the dependency ratio increases.

Decrease in the working-age population: Aging populations may also experience a decline in the working-age population due to factors such as lower fertility rates and emigration. A smaller working-age population means there are fewer individuals available to support the dependent population, leading to higher dependency ratios.

Increased healthcare and social support needs: Aging populations require more healthcare and social support services, which can further contribute to higher dependency ratios. The cost of providing these services falls on the working-age population, increasing the burden on those who are still economically active.

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Overall, the combination of an increasing elderly population, declining birth rates, a shrinking working-age population, and increased healthcare and social support needs contribute to higher dependency ratios in aging populations.

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