Demographic dividend

Demographic dividend is the economic growth potential that can result from shifts in a population's age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population. Demographic dividend occurs when the proportion of working people in the total population is high because this indicates that more people have the potential to be productive and contribute to growth of the economy. Due to the dividend between young and old, many argue that there is great potential for economic gains, which has been termed the demographic gift. In order for economic growth to occur the younger population must have access to quality education, adequate nutrition and health. Demographic dividend takes place when a country undergoes a demographic transition from a rural agrarian economy with high fertility rates to an urban industrialized economy with low fertility and mortality rates.