Question #2315

A rising child dependency ratio

• (a) Will ultimately lead to a falling standard dependency ratio once birth rates decline.
• (b) Means that people of retirement age are increasing at a faster rate than children.
• (c) Means that child care centres are becoming more dependent on government support.
• (d) Means the aged dependency ratio is falling.

Answer #11584

Answer: (a) Will ultimately lead to a falling standard dependency ratio once birth rates decline.

Explanation

Answer: Option (a)

The population is divisible into the working age (say between 15-64 years) and non-working age.

Using that demarcation, several different dependency ratios can be:

1. Standard dependency ratio - 100 times the ratio of non-working age to working age.

2. Aged dependency ratio - 100 times Number of persons over 65 years of age divided by the number of persons of working age.

3. Child dependency ratio - 100 times Number of persons under 15 years of age divided by the number of persons of working age

Most of the advanced nations have rising aged ratios whereas many African countries, for example, have rising child ratios.

The implications for the future are quite different.

For example, the nations with high child ratios, will soon experience falling standard ratios as the children move into the workforce.

They require first class primary education and childcare provision, while the former nations, require increased aged care and age-related health care.

But as time passes, the standard dependency ratio of a society dominated by a rising child dependency ratio will decline.

That is not the case for a nation with a rising Aged dependency ratio.