People > Dependency ratios > Potential support ratio: Countries Compared

DEFINITION: This entry is derived from People > Dependency ratios, which dependency ratios are a measure of the age structure of a population. They relate the number of individuals that are likely to be economically "dependent" on the support of others. Dependency ratios contrast the ratio of youths (ages 0-14) and the elderly (ages 65+) to the number of those in the working-age group (ages 15-64). Changes in the dependency ratio provide an indication of potential social support requirements resulting from changes in population age structures. As fertility levels decline, the dependency ratio initially falls because the proportion of youths decreases while the proportion of the population of working age increases. As fertility levels continue to decline, dependency ratios eventually increase because the proportion of the population of working age starts to decline and the proportion of elderly persons continues to increase.
total dependency ratio - The total dependency ratio is the ratio of combined youth population (ages 0-14) and elderly population (ages 65+) per 100 people of working age (ages 15-64). A high total dependency ratio indicates that the working-age population and the overall economy face a greater burden to support and provide social services for youth and elderly persons, who are often economically dependent.
youth dependency ratio - The youth dependency ratio is the ratio of the youth population (ages 0-14) per 100 people of working age (ages 15-64). A high youth dependency ratio indicates that a greater investment needs to be made in schooling and other services for children.
elderly dependency ratio - The elderly dependency ratio is the ratio of the elderly population (ages 65+) per 100 people of working age (ages 15-64). Increases in the elderly dependency ratio put added pressure on governments to fund pensions and healthcare.
potential support ratio - The potential support ratio is the number of working-age people (ages 15-64) per one elderly person (ages 65+). As a population ages, the potential support ratio tends to fall, meaning there are fewer potential workers to support the elderly.