Dependancy ratio
- People in the age group 15-64 years of age are considered to be the economically productive population
- The young (0-14) and old (>65) people are considered to be dependent on the economically productive
- Dependency ratio is calculated as the ratio of number of people in 0-14 years and >65 years age group to number of people in 15-64 year age group
- There are 2 subtypes of dependency ratio
- Young age dependency ratio – ratio of young people to the economically productive population
- Old age dependency ratio – ratio of old people to the economically productive population
- Dependency ratio does not take into consideration the people in the young and old age groups which may be working or those in the economically productive age group who are unemployed
- Increased dependency ratio indicated increased burden on the economically productive population to support the others
- Inverse dependency ratio – it is calculated as the inverse of the dependency ratio – signifies the number of economically productive people for each dependent person
