Dependency ratio

Definition

The dependency ratio is a measure used in sociology and demography to indicate the ratio of people in a population who are not in the workforce (dependents) to those who are in the workforce (producers). It often highlights the proportion of children and elderly individuals compared to the working-age population.

Related terms

Aging Population: An increasing trend in the median age of a population due to declining birth rates and/or rising life expectancy.

Workforce Participation Rate: The percentage of working-age individuals who are employed or actively looking for employment.

Social Security System: A government program that provides financial assistance to people with an inadequate or no income, primarily targeting older adults and those with disabilities