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The demographic dividend is a rise in the rate of economic growth due to a rising share of working age people in a population. This usually occurs late in the demographic transition
Demographic transition

The Demographic transition model is a model used to represent the process of explaining the transformation of countries from high birth rates and high death rates to low birth rates and low death rates as part of the economic development of a country from a pre-industrial to an industrialized Economic system....
 when the fertility rate falls and the youth dependency rate declines. During this demographic window
Demographic window

Demographic Window is defined to be that period of time in a nation's demographic evolution when the proportion of population of working age group is particularly prominent....
 of opportunity, output per capita rises. It has been argued that the demographic dividend played a role in the "economic miracles" of the East Asian Tigers
East Asian Tigers

File:Gangnam1.jpgFile:Singapore Skyline.jpgThe term Four Asian Tigers or Asian Tigers refers to the highly industrialized economies of Economy of Hong Kong, Economy of South Korea, Economy of Singapore, and Economy of Taiwan....
  and that the economic boom in Ireland in the 1990s (the Celtic tiger
Celtic Tiger

File:CelticTigerEconomist.PNGCeltic Tiger is a term used to describe the period of rapid economic growth in Republic of Ireland that began in the 1990s and slowed in 2001, only to pick up pace again in 2003 and then slowed down, once again by 2007 with further contraction in 2008....
) was in part due to the legalization of contraception in 1979
An Irish solution to an Irish problem

"An Irish solution to an Irish problem" was a term popularised by Charles Haughey during his career as Minister for Health and Children in Republic of Ireland and refers to the which was considered a compromise solution....
 and subsequent decline in the fertility rate .






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The demographic dividend is a rise in the rate of economic growth due to a rising share of working age people in a population. This usually occurs late in the demographic transition
Demographic transition

The Demographic transition model is a model used to represent the process of explaining the transformation of countries from high birth rates and high death rates to low birth rates and low death rates as part of the economic development of a country from a pre-industrial to an industrialized Economic system....
 when the fertility rate falls and the youth dependency rate declines. During this demographic window
Demographic window

Demographic Window is defined to be that period of time in a nation's demographic evolution when the proportion of population of working age group is particularly prominent....
 of opportunity, output per capita rises. It has been argued that the demographic dividend played a role in the "economic miracles" of the East Asian Tigers
East Asian Tigers

File:Gangnam1.jpgFile:Singapore Skyline.jpgThe term Four Asian Tigers or Asian Tigers refers to the highly industrialized economies of Economy of Hong Kong, Economy of South Korea, Economy of Singapore, and Economy of Taiwan....
  and that the economic boom in Ireland in the 1990s (the Celtic tiger
Celtic Tiger

File:CelticTigerEconomist.PNGCeltic Tiger is a term used to describe the period of rapid economic growth in Republic of Ireland that began in the 1990s and slowed in 2001, only to pick up pace again in 2003 and then slowed down, once again by 2007 with further contraction in 2008....
) was in part due to the legalization of contraception in 1979
An Irish solution to an Irish problem

"An Irish solution to an Irish problem" was a term popularised by Charles Haughey during his career as Minister for Health and Children in Republic of Ireland and refers to the which was considered a compromise solution....
 and subsequent decline in the fertility rate . In Ireland the ratio of workers to dependents improved due to lower fertility but was raised further by increased female labor market participation and a reversal from outward migration of working age population to a net inflow. Africa, on the other hand continues to have high fertility and youth dependency rates, which contribute to its economic stagnation . The magnitude of the demographic dividend appears to be dependent on the ability of the economy to absorb and productively employ the extra workers , rather than a pure demographic gift
Demographic gift

Demographic gift is a term in demographics used to describe the initially favorable effect of falling fertility rates on the ratio of the employment population to the dependent population ....
.

Graph 1
Low fertility initially leads to low youth dependency and a high ratio of working age to total population. However as the relatively large working age cohort grows older, population aging sets in. The graph shows the ratio of working age to dependent population (those 15 to 64 years old, divided by those above or below this age range - the inverse of the dependency ratio
Dependency ratio

In economics and geography the dependency ratio is an age-population ratio of those typically not in the labor force and those typically in the labor force ....
) based on data and projections from the .

See also

  • Demographic transition
    Demographic transition

    The Demographic transition model is a model used to represent the process of explaining the transformation of countries from high birth rates and high death rates to low birth rates and low death rates as part of the economic development of a country from a pre-industrial to an industrialized Economic system....
  • Demographic trap
    Demographic trap

    The term demographic trap applies to a country whose population is growing rapidly due to a high birth rate and low death rate. This usually happens when a developing country moves through the demographic transition of becoming developed....
  • Demographic window
    Demographic window

    Demographic Window is defined to be that period of time in a nation's demographic evolution when the proportion of population of working age group is particularly prominent....