Age distribution shows the different ages that are spread in a population of country. It is the ages to which the young and old belong. The working and the dependent population is derive here too.
ECONOMIC IMPLICATION OF HIGH DEPENDENCY POPULATION
- It causes a low standard of living
- It causes high rate of public expenses on goods and services needed
- It causes under- employment of resources due to shortage of labour force.
- It causes low productivity rate owing to the shortage of labour force.
ECONOMIC EFFECT OF HIGH PERCENTAGE OF MIDDLE AGE (WORKING POPULATION)
- The labour force will expand and productivity enhanced thereby leading to increase in the national income.
- Greater employment of resources is attained because of the availability of labour force.
- The demand for goods required by adults will increase.
- Geographical mobility of labour will be enhanced.
ECONOMIC EFFECT OF HIGH PERCENTAGE OF OLD PEOPLE
- Productivity will decline since the old people cannot work.
- Labour mobility will be impeded.
- Heaven of pension paid to this people will fall heavily on the small working people.