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. Tianjin, China

    A definition of Tianjin, China.
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. Buffett: High Interest Rates Make Stocks ...
    Investing News

    Buffett: High Interest Rates Make Stocks ...

  4. Banquo’s Grain And U.S. Interest Rates
    Economics

    Banquo’s Grain And U.S. Interest Rates

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. 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 ...
  3. 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 ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center