Why is it better for the country to have a lower dependency ratio?
Answers
Dependency ratio is an age-population ratio in economics,
demography, geography and sociology. It is a ratio of those typically not in
the labour force and those typically in the labour force. Or the dependent part
ages 0 to 14 and 65 plus, and the productive part ages 15 to 64. The dependency
ratio is used to measure the pressure on productive population.
A high ratio indicates that there is more financial stress
between working people and dependents. A high ratio can slow the economic
growth. An intermediate dependency ratio shows that there are sufficient number
of people in the working class who can support the dependent population.
Low dependency ratio shows that there are more people in the
working class than the dependents. If the dependency ratio is low people can
get better pensions and better health care. So it is good for a country to have