Dependency ratios

Dependency ratios are a measure of the age structure of a population. They calculate the number of individuals that are likely to be economically dependent on the support of others by contrasting the ratio of youths (ages 0-14) and the elderly (ages 65+) to the number of those in the working-age group (ages 15-64). As fertility levels decline, the dependency ratio initially falls because the proportion of youths decreases while the proportion of the population of working age increases. The dependency ratio then increases because the proportion of the population of working age starts to decline as the proportion of elderly persons continues to increase.

total dependency ratio - the ratio of combined youth population (ages 0-14) and elderly population (ages 65+) per 100 people of working age (ages 15-64). A high total dependency ratio indicates that the working-age population and the overall economy face a greater burden to support and provide social services for youth and elderly persons.

youth dependency ratio - the ratio of the youth population (ages 0-14) per 100 people of working age (ages 15-64). A high youth dependency ratio indicates that a country will be spending more on schooling and other services for children.

elderly dependency ratio - the ratio of the elderly population (ages 65+) per 100 people of working age (ages 15-64). Increases in the elderly dependency ratio require more government funding for pensions and healthcare.

potential support ratio - the number of working-age people (ages 15-64) per one elderly person (ages 65+). As a population ages, the potential support ratio tends to fall, meaning there are fewer potential workers to support the elderly.