The big idea: When a country's fertility falls, the share of people who are of working age grows compared with the number of dependants (children and the elderly).
This can give a demographic dividend — a window when a large workforce supports relatively few dependants, which can boost the economy if there are enough jobs.
Key terms
- Working-age population — people aged roughly 15-64, the main workers and taxpayers.
- Dependants — people too young (under 15) or too old (65+) to be in the main workforce.
- Dependency ratio — the number of dependants per 100 working-age people.
- Demographic dividend — the economic boost when the working-age share is large and dependency is low.
Low ratio = the opportunity: A low dependency ratio means each worker supports fewer dependants, so more income can be earned, taxed, saved and invested.
The dividend is a window, not forever: as the working-age bulge grows old, the elderly share rises and the ratio climbs again.
How the gains arise
- Bigger workforce — more working-age people means more workers and a larger output of goods and services.
- Larger tax base — more earners pay more tax, giving the government revenue for schools, health and infrastructure.
- More savings and investment — with few dependants to support, families and firms can save and invest more.
- Attracts investment — a young, growing labour force can draw in foreign companies and factories.
Develop the point: Explain needs development — don't just say 'more workers'. Say more workers -> more output and tax revenue -> economic growth. End on the gain to the country.
For one named country, explain two ways it gains from a demographic dividend.
Model answer plan
See the mark-by-mark plan — for / against / judgement, with marking guidance — in study mode.
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How this is tested: A common data figure here is a grouped bar chart comparing each world region's dependency ratio now and projected for a future date.
The skill is reading the bars accurately: State one region's exact value, then Identify the single region whose ratio falls between the two dates. Quote the units (dependants per 100) and never confuse a rise with a fall.
Read the key first. Which region's 2060 bar is SHORTER than its 2020 bar?
Interactive diagram
Explore the labelled diagram, charts and maps for this topic in full study mode.
Using the chart, (a) state Asia's dependency ratio in 2020 [1]; (b) identify the one region whose ratio is projected to fall by 2060 [1].
Model answer plan
See the mark-by-mark plan — for / against / judgement, with marking guidance — in study mode.
| Region | 2020 | 2060 (projected) |
|---|---|---|
| Africa | 78 | 60 |
| Asia | 47 | 59 |
| Latin America | 49 | 62 |
| Europe | 55 | 75 |
| North America | 54 | 67 |
IB-style question - read the chart
Using the table above: (a) state Asia's dependency ratio in 2020 [1]; (b) identify the one region whose dependency ratio is projected to fall between 2020 and 2060 [1].
How to answer each part
- (a) State Asia's 2020 value. Find the Asia row, the 2020 column -> 47 dependants per 100 working-age people.
- (b) Identify the falling region. Compare 2020 with 2060 for each row. Only Africa falls (78 -> 60); every other region rises as it ages.
Final answer
(a) 47 (dependants per 100); (b) Africa - its ratio falls from 78 to 60.
State vs Identify: State = read the exact number straight off the chart. Identify = pick out the region/category the question describes. Neither needs a reason - just an accurate read.
Where the dividend is spent: A growing working-age population usually moves to cities for work, swelling megacities (urban areas of over 10 million people).
For individuals, megacities offer real opportunities - and the exam asks you to explain the benefits people gain from them.
| Benefit | Why it helps the individual |
|---|---|
| More and varied jobs | A huge labour market offers more work and higher wages than rural areas |
| Better services | Hospitals, universities and schools are concentrated, so access improves |
| Infrastructure | Public transport, electricity and water are usually more reliable |
| Social opportunity | Leisure, culture and contacts can raise quality of life and social mobility |
Lagos, Nigeria: Lagos has grown past 15 million people, drawing migrants from across Nigeria.
Why people come: far more jobs in finance, trade and services, plus better schools and hospitals than the rural areas they leave - the kind of individual benefits the exam rewards.
Give and develop two distinct benefits that individuals gain from the expansion of megacities.
Model answer plan
See the mark-by-mark plan — for / against / judgement, with marking guidance — in study mode.