What is demographic dividend?
As per United Nations Population Fund (UNFPA),
Demographic Dividend is the economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population is larger than the non-working-age share of the population
As fertility declines, the share of the young population falls and that of the older, dependent population rises. As fewer births are registered, the number of young dependents grows smaller relative to the working population. This boosts working population productivity, which leads to a demographic dividend. #
Must Read: Opportunities and challenges of demographic dividend in India
How is it beneficial to society?
The smaller share of children in the population enables higher investment per child, which means the future entrants in the labour force can have better productivity and thus boost income.
But with the passage of time, the share of the older population rises and that of the working age population begins to fall. Hence, this dividend is available for a period of time only and is called, ‘the window of demographic opportunity’.
Must Read: Whether Indian demographic dividend is turning into a demographic disaster or not?
