Dependency Ratio

(redirected from Age dependency)

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 ?
Population aging is expected to effect a decline in the labor force, lower fertility, and an increase in age dependency.
Over the last five decades, the world has experienced a decline in the age dependency rates and an increase in life expectancy.
High fertility implies a relatively younger population, and thus higher age dependency. As fertility declines, age dependency declines and the relative proportion of the working-age population increases, leading to rising per-capita income (as compared to per-capita consumption), thus increasing the level of savings and investment in the economy.
In the study, health expenditure as a share of gross domestic product was the dependent variable while gross domestic product per capita, percentage of total population covered by public and private insurance, out-of-pocket health expenditure as percentage of total expenditure on health, age dependency ratio, life expectancy at birth, number of hospitals per million population, number of physicians per 1000 population/head counts, pharmaceutical sales and perceived health status were designated as independent variables.
There is a clear age dependency, with younger age groups (18-39) far more optimistic about a positive change in their standard of living than those over 60, of which two thirds expect no change.
The young age dependency ratio is projected to slightly increase to 25% in 2060 from 24% in 2015, while the old age dependency ratio is expected to extensively rise up to 53.5% in the same year, from 29% in 2015 (Giannakouris K., 2008).
It builds on the existing literature on the factors that influence the life insurance consumption and finds that Morocco's life insurance demand, to a large extent, can be explained by four important variables that are financial development, health care expenditures, population and age dependency ratio.
"This is because the old age dependency ratio -- the number of working adults per pensioner -- could drop from four to one to as little as two to one in the not too distant future."
Though the Netherlands made it into the top 5, questions remain in regards to the sustainability of the Dutch welfare state and pension system given negative demographic projections and an increasing old age dependency ratio.
Pakistan's population growth rate is decelerating the working age population is expanding and the age dependency ratio is on its way down.
The age dependency ratio for those of working age, whether they have a job or not, stands at 2.7 individuals per person of working age.