What do you mean by ‘Demographic Dividend’ ?

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What do you mean by ‘Demographic Dividend’ ?

A rise in the rate of economic growth due to a higher share of working age people in a population
A rise in the rate of literacy due to development of educational institutions in different parts of the country
A rise in the standard of living of the people due to the growth of alternative livelihood practices
A rise in the gross employment ratio of a country due to government policies
This question was previously asked in
UPSC CDS-2 – 2019
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Demographic dividend refers to the potential for economic growth that arises as a country undergoes demographic transition. During this transition, a country’s population structure shifts, resulting in a bulge in the proportion of the population in the working-age group (typically 15-64) relative to the dependent age groups (children and elderly). With a larger workforce and a smaller dependent population, there is a potential for increased productivity, savings, and investment, which can lead to accelerated economic growth, provided the workforce is healthy, educated, and gainfully employed.
Demographic dividend is the economic benefit derived from a favorable age structure characterized by a high proportion of working-age individuals.
Realizing the demographic dividend requires investments in health, education, and job creation. Without these investments, a large young population can become a liability (referred to as a “demographic burden”) rather than an asset.

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