Demographic Transition Model Questions
The concept of demographic dividend refers to the economic growth potential that can arise from changes in a country's age structure. It occurs when a country experiences a decline in fertility rates and a subsequent increase in the working-age population relative to the dependent population (children and elderly). This demographic shift can lead to increased productivity, as there are more people in the workforce compared to dependents. Additionally, with fewer dependents to support, households have more disposable income, which can stimulate economic growth through increased consumption and savings. The demographic dividend can be a significant opportunity for countries to accelerate their economic development if they invest in education, healthcare, and job creation to harness the potential of their growing working-age population.