Demographic dividend

Abstract

In the early 1950s, the Philippines was just recovering from the rubbles of the second world war. Fertility was high, averaging about seven to eight births per woman (UN 2017). Living conditions, however, were poor. An infant born around that time was expected to live for only 55 years. Much of the population were therefore comprised of children, with a little more than half of the country’s whole population being younger than 20 years old. At present, fertility has lowered down to about three births per woman. Life expectancy at birth also reached an all-time high of 69 years. Children still constitute a large proportion of the population, but the share of those in the prime working ages has increased significantly—making up to about 63 percent of the current total population from about 54 percent almost seven decades ago. This transition from a high-mortality, high-fertility to a relatively low mortality, low-fertility environment creates an opportunity to raise the overall well-being of the population, i.e., the demographic dividend. This Economic Issue of the Day gives an overview of what the demographic dividend is all about, its causes, and how the Philippines fares in reaping the gains from the shift in the population’s age demographics.