Demographic gift

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Description:
Demographic gift is a term in demographics used to describe the initially favorable effect of falling fertility rates on the age dependency ratio, the fraction of children and aged as compared to that of the working population.

Overview

Fertility declines in a population combined with falls in mortality rates—the so-called "demographic transition"—produce a typical sequence of effects on age structures. The child-dependency ratio (the ratio of children to those who support them) at first rises somewhat due to more children surviving, then falls sharply as average family size decreases. Later, the overall population ages rapidly, as currently seen in many developed and rapidly developing nations. Between these two periods is a long interval of favorable age distributions, known as the "demographic gift," with low and falling total dependency ratios (including both children and aged persons).

Use of the term

The term was used by David Bloom and Jeffrey Williamson Bloom, David E., David Canning and Jaypee Sevilla, 2003, The Demographic Dividend: A New Perspective on the Economic Consequences of Population Change,...
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