Demographic Dividend and Dependency Ratios

This chapter addresses the prospects of, and the policies for, a first demographic dividend in sub-Saharan Africa. It examines the first demographic dividend concept and focuses on the pivotal role of the dependency ratio concept. The chapter analyzes three different dependency ratios: a demographic dependency ratio (DDR), an employment dependency ratio (EDR) and a socioeconomic dependency ratio (SDR), and provides estimated data for each. It evaluates the prospects for sub-Saharan Africa countries to capture a first demographic dividend by 2035. The concept of demographic dividend is an addition to the long list of works that aim to assess the impact of population growth on economic growth. The chapter explores the dependency ratio based on age groups a DDR. In order to capture a demographic dividend, a developing country will need to not only improve the DDR, but also the EDR and the SDR. Most sub-Saharan African countries have yet to capture a demographic dividend.