Dependency Ratios

Understanding the dependency ratios of various economies is important to understanding the dynamics of long-term economic growth and well-being. Dependency Ratio is defined as the ratio of the sum of the population till 15 years of age and population 65 plus to that of the working-age population. In the long run, a low fertility rate increases dependency on the elderly population and reduces the working population. According to OECD, the total fertility rate in a specific year is defined as the total number of children that would be born to each woman if she were to live to the end of her child-bearing years and give birth to children in alignment with the prevailing age-specific fertility rates. It is calculated by totaling the age-specific fertility rates as defined over five-year intervals.

Video : Dependency Ratio | The middle Road 

The educational video analysis fertility rates and dependency ratios of various countries, and elaborates on labor force participation rates keeping long-term economic growth in mind. The video leads to the derivation of Cobb Douglas Production Function and Solow Model.