Dependency Ratio


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Dependency Ratio

The ratio of the rough number of persons who are financially dependent on another person to the rough number of persons of working age, expressed as a percentage. The dependency ratio shows how easy or difficult it is for the persons of working age to take care of those who are not of working age. It is calculated thus:

Dependency ratio = (Number of persons under 15 + Number of persons over 65) / (Number of persons between 15 and 65) *100
References in periodicals archive ?
Limited access to financial markets, high dependency ratio and low returns on financial instruments all contribute to this low rate of savings.
Future face of Europe: Fertility rates will remain low leading to a dependency ratio of 2 falling from the already unsustainable 4; this will lead to an increase in private spending on public transportation systems, higher education, and or public medical and social care as budgets feel the squeeze
In fact, under any projection, China's old-age dependency ratio will pick up sharply, which means that the relaxation of population policy will only smooth the slope of old-age dependency ratio over time," he wrote in a note.
On the other hand, the similarly constructed old-age dependency ratio (measuring the population 65 and over) was positively related to unemployment and negatively related to personal income, particularly income net of transfer payments (which include Social Security and Medicare).
Until the 2030s, the dependency ratio (the working-age population divided by the aged population) will increase, maintaining a positive demographic dividend, but it will start to decline approaching 2040.
Moreover, the total dependency ratio in Oman will go up due to the expected increase in old age dependency and will reach 55 per cent in 2050.
Academic estimates indicate that a one percentage point (pp) rise in the old age dependency ratio (the ratio of population aged 65+ to the population 15-64) will lead to a 0.
The demographic characteristics such as larger household size and/or dependency ratio are associated with chronic poverty as they put an extra burden on a household's assets and resource base [Jayaraman and Findeis (2005); Sewanyana (2009)].
A high dependency ratio puts a strain on government spending in healthcare and pension schemes.
According to Statistics Sweden's population forecast, we now face a long period of growth in the demographic dependency ratio to 0.
To see why, consider the tax rate necessary to pay for social benefits, which equals the replacement rate (the average level of benefits relative to taxpayer incomes) multiplied by the dependency ratio (the share of the population receiving the benefits).
2) The dependency ratio is the ratio between pensioners and the working population.
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