Demographic Transition Model Questions
The concept of the 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. With a larger working-age population, there is a potential for increased savings, investments, and economic output. This can result in higher per capita income, job creation, and poverty reduction.
The demographic dividend can contribute to poverty reduction by providing opportunities for economic development and improved living standards. As the working-age population grows, there is a potential for increased labor supply, which can lead to higher wages and reduced unemployment rates. This, in turn, can help lift people out of poverty and improve their overall well-being.
However, it is important to note that the demographic dividend is not automatic and requires supportive policies and investments in education, healthcare, infrastructure, and job creation. Without these measures, the potential benefits of the demographic dividend may not be fully realized, and poverty reduction may not be achieved.