One of the prime reasons why the 'demographic dividend' is considered temporary is.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → The larger pool of working age people will eventually turn into non-working old people
Option (2) The larger pool of working age people will eventually turn into non-working old people — Correct. A falling dependency ratio means more workers relative to non-workers, which can be a source of economic growth; this benefit from the changing age structure is the ‘demographic dividend’. It is temporary because the larger pool of working age people will eventually turn into non-working old people, and the dependency ratio then rises again.
NCERT (2025-26): “…On the other hand, a falling dependency ratio can be a source of economic growth and prosperity due to the larger proportion of workers relative to non-workers. This is sometimes refered to as the ‘demographic dividend’, or benefit flowing from the changing age structure. However, this benefit is temporary because the larger pool of working age people will eventually turn into non-working old people.” |