dependency ratio
the ratio between the number of dependent’s and those that are economically active
dependants
young or old ie young or retired
dependancy ratio equasion
number of children (0-14) and elderly (over64)/number of people aged 15-64x100
problems of dependancy ratio
the ratio doesn’t take into account: those that are unemployed, chose not to work, continue too work over the age of 64
dependancy ratio gives an overall idea of the burden of support for the economically active and makes comparison at country levels much essier
.
what is a high and low dependancy ratio
40-low
60-high
whats the worlds average
51
what would the DR be like if a country has a high birth rate
high because there are so many children to support
what would the DR be like if a country has a high life expectancy
high because people work above the age of 64
