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Dependency Ratio

   Also found in: Wikipedia 0.06 sec.
Dependency Ratio
A measure showing the number of dependents (aged 0-14 and over the age of 65) to the total population (aged 15-64). Also referred to as the "total dependency ratio".

Calculated by:



Notes:
This indicator gives insight into the amount of people of non-working age compared to the number of those of working age. A high ratio means those of working age - and the overall economy - face a greater burden in supporting the aging population.

The young dependency ratio includes only under 15s, and the elderly dependency ratio focuses on those over 64. For example, if in a population of 1,000 there are 250 people under the age of 15 and 500 people between the ages of 15-64. The youth dependency ratio would be 50% (250/500).



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In the medium-term (ten to twenty years), the declining birth rate will lower the dependency ratio (thus lessening the burden on the workforce), and the rising female labor participation rate will offset some of the decline in the labor force.
Japan's golden age: what to make of the age demographic by Lo, Chi / The International Economy
Much of the discussion has been related to analysis of the impact of aging populations and a shrinking dependency ratio of people who are working and contributing money through payroll taxes to finance those who are not.
David A. Wise (Ed.), Perspectives on the Economics of Aging by Tracy, Martin B. / Journal of Sociology & Social Welfare
Table 4 shows the age dependency ratio for the same six countries in 1990 and in 2020.
Recent European trends in disability and related programs by Zeitzer, Ilene R. / Social Security Bulletin
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