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Question
Give geographical reason
Demographic dividend increases when proportion of working population increases.
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Solution
- In a country, there is working population and dependent population.
- The ratio between working and non-working dependent population determines how productive the country is economically.
- If this ratio is higher, then the contribution of the working population will be higher in the economy.
- As fewer births are registered, the number of dependents becomes smaller than the working population.
- With fewer people to support and more people working, the economy’s resources are invested in other areas to accelerate a country’s economic development.
- As a result of this, per capita income increases with time. This economic benefit is in the form of a dividend which benefits everyone in the economy.
Hence, demographic dividend increases when the proportion of the working population increases.
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