Question

Is the dependency burden higher or lower in developing countries? Why? Economic Development (12th Edition)

Answer 1

In developing countries we usually very high population growth . This high birth rate is the result of many economically dependent children in the economy . The active labor force has to support this growing population .

We know that both older people ( above 65 years of age ) and children ( 0 to 15 years of age ) are referred to as economic dependency burden . They have to be supported financially by the active labor force .

In developed countries this problem occurs with the aging population burden due to their better standards of living and medical facilities . But in developing nations the crude birth rate if very high , coupled with less awareness and also immigrations . So the dependency burden is higher in developing countries .