DEMOGRAPHIC DIVIDEND
A new reason for attending to fertility dynamics has emerged i.e. the demographic dividend. As fertility rates decline late in the demographic transition, a unique window may open up for a rapid economic growth and human development. As the fertility rate falls down, the young age dependency rate decreases effecting the change in the distribution of age – somewhat more people in the adult age groups that include the productive labor force. This progress in the ratio of the productive workers to child dependents makes economic growth rapid and less burden on the families. As the demographic window of opportunities open, per capita output improves reduction in burden on families and society.
However, the demographic dividend…show more content… When the window of opportunity closes, those that do not make full use of the demographic dividend will face more intense pressure in a position that is weaker than ever.
HOW DOES THE DEMOGRAPHIC DIVIDEND HELP OUT?
The demographic dividend is delivered through the following mechanisms.
Labor Supply
• The generations of children who are born during periods of high fertility finally depart the dependent years and can become part of the working class (good policies are required to educate and train them so that they are not unemployed).
• Now women have comparatively fewer children than before and take jobs outside home; also they tend to be better educated than the older cohorts and are thereby more productive in the labor force.
This requires wise policies by the government to create more job opportunities and get hold of the “dividends” of the changed age distribution—if they fail to achieve this, countries may thrash about the social unrest of millions of unemployed citizens of the country.
Savings
• The working age adults earn more and can save more money as comparatively to the very young. The shift from a very young age distribution favors greater personal as well as national