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Development area
Dependency ratio
Together with the the Elderly index the Dependency ratio provides information on population ageing and change over time. This is presented and described using tables, time series graphs and time-series analysis. There are three aspects to the Dependency ratio: Total dependency ratio; Youth dependency ratio; Old-age dependency ratio
| Aim of the method/technique | Total dependency ratio describes the ratio of population of working age to population under working age in the population under study. |
| Scale – spatial and temporal | It can be calculated from smaller geographical units (municipality) to higher geographical units (region, nation, etc). The time scale used is annual. |
| Brief description | Dependency ratio is taken from the sum of total young and elderly population divided by active population. Total dependency ratio uses the following formula: Total Dependency ratio = (Population<15 years old + Population >65years old)/Population between 15-64 years old) *100 (ISTAT, Glossary). From the total dependency ratio its components, youth dependency and elderly dependency, can also be calculated as follows: Youth Dependency ratio = Population<15 years old /Population between 15-64 years old*100 Elderly Dependency ratio = Population >65 years old /Population between 15-64 years old*100 The distribution between these two components allows us to determine the weight of elderly population, which has an income, on the welfare system. The youth dependency ratio allows us to determine the weight of young people not of working age on family income. Dependency ratio, correlated by data on employment, can provide information on the burden of the inactive workforce on income derived from the active workforce. |
| Data requirements | Total dependency ratio, youth dependency ratio and elderly dependency ratio require data on three age ranges of population: population under the age of 15, population over the age of 65 and population aged between 15 and 64. |
| Main applications in cropland , grazing land and forests & shrubland regions | --- |
| Strengths and weaknesses | --- |