Dependency Ratio

AAA

DEFINITION of 'Dependency Ratio'

A measure showing the number of dependents (aged 0-14 and over the age of 65) to the total population (aged 15-64). Also referred to as the "total dependency ratio".

Calculated by:

Dependency Ratio

INVESTOPEDIA EXPLAINS 'Dependency Ratio'

This indicator gives insight into the amount of people of non-working age compared to the number of those of working age. A high ratio means those of working age - and the overall economy - face a greater burden in supporting the aging population.

The young dependency ratio includes only under 15s, and the elderly dependency ratio focuses on those over 64. For example, if in a population of 1,000 there are 250 people under the age of 15 and 500 people between the ages of 15-64. The youth dependency ratio would be 50% (250/500).

RELATED TERMS
  1. Life Expectancy

    1. The age until which a person is expected to live. 2. The remaining ...
  2. Medicare

    A U.S. federal health program that subsidizes people who meet ...
  3. Pension Shortfall

    A situation in which a company offering employees a defined benefit ...
  4. Pension Plan

    A type of retirement plan, usually tax exempt, wherein an employer ...
  5. Dependent

    An individual whom a taxpayer can claim for credits and/or exemptions. ...
  6. Lion economies

    A nickname given to Africa's growing economies.
Related Articles
  1. The Investing Risk Of Underfunded Pension ...
    Retirement

    The Investing Risk Of Underfunded Pension ...

  2. Taking The Surprise Out Of Long-Term ...
    Home & Auto

    Taking The Surprise Out Of Long-Term ...

  3. Top Ranking Nations By HNWI
    Personal Finance

    Top Ranking Nations By HNWI

  4. The World's Top Financial Cities
    Economics

    The World's Top Financial Cities

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center