Demographics
Demographic Dividend
Definition
The economic growth boost that occurs when a country's working-age population grows faster than its dependent population (children and elderly).
Explanation
The demographic dividend occurs during the transition from high to low fertility rates. For a period, the share of working-age adults increases relative to dependents, potentially boosting savings, investment, and GDP growth. East Asia's rapid growth from 1970-2010 is partly attributed to this dividend. India and parts of Africa are currently in their dividend phase. However, the dividend is not automatic — it requires productive employment for the growing workforce.