What is the term used to denote an increase in the proportion of workers relative to non-workers in the population?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Demographic dividend
Option (1) Population momentum — Incorrect. Population momentum is the growth that continues when a large cohort of women of reproductive age keeps the population growing, even if each woman has fewer children. It is about the number of births, not the share of workers.
Option (2) Demographic dividend — Correct. A falling dependency ratio means a larger proportion of workers relative to non-workers, which can be a source of economic growth and prosperity. This benefit flowing from the changing age structure is called the demographic dividend; it is temporary, because the large working-age group will in time become non-working old people.
Option (3) Demographic transition — Incorrect. The theory of demographic transition says that population growth is linked to economic development: a society moves from high birth and death rates, through a phase of fast growth, to low birth and death rates. It describes stages of growth, not the balance of workers and non-workers.
Option (4) Demographic alteration — Incorrect. There is no such term.
NCERT (2025-26): “Common Concepts and Indicators … The dependency ratio is a measure comparing the portion of a population which is composed of dependents (i.e., elderly people who are too old to work, and children who are too young to work) with the portion that is in the working age group, generally defined as 15 to 64 years. The dependency ratio is equal to the population below 15 or above 64, divided by population in the 15-64 age group. This is usually expressed as a percentage. A rising dependency ratio is a cause for worry in countries that are facing an ageing population, since it becomes difficult for a relatively smaller proportion of working-age people to carry the burden of providing for a relatively larger proportion of dependents. 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.” |