Demographic Dividend

AAA

DEFINITION of 'Demographic Dividend'

The freeing up of resources for a country's economic development and the future prosperity of its populace as it switches from an agrarian to an industrial economy. In the initial stages of this transition, fertility rates fall, leading to a labor force that is temporarily growing faster than the population dependent on it. All else being equal, per capita income grows more rapidly during this time too.

INVESTOPEDIA EXPLAINS 'Demographic Dividend'

This dividend period generally lasts for a long time - typically five decades or more. Eventually, however, the reduced birth rate reduces the labor force growth. Meanwhile, improvements in medicine and better health practices leads to an ever-expanding elderly population, sapping additional income and putting an end to the demographic dividend.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Industry

    A classification that refers to a group of companies that are ...
  3. Boom

    A period of time during which sales of a product or business ...
  4. Business

    1. An organization or enterprising entity engaged in commercial, ...
  5. Sector

    1. An area of the economy in which businesses share the same ...
  6. Expansion

    The phase of the business cycle when the economy moves from a ...
Related Articles
  1. Understanding World Bank Data
    Investing

    Understanding World Bank Data

  2. India Is Eclipsing China's Economy As ...
    Economics

    India Is Eclipsing China's Economy As ...

  3. Ebola's Economic Impacts on Liberia, ...
    Economics

    Ebola's Economic Impacts on Liberia, ...

  4. What are the main reasons for why there ...
    Fundamental Analysis

    What are the main reasons for why there ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center