Old-age dependency: is it really increasing in aging populations?

Tilak Abeysinghe

Applied Economics Letters, 2019, vol. 26, issue 13, 1111-1117

Abstract: To account for economic dependency we propose an adjustment to the old-age dependency ratio based on savings of the elderly. Computations are simple and the adjusted ratio is aimed at retaining the exogenous character of the conventional demographic ratio. Data from an economy with stagnating incomes and a fast growing elderly population (Japan) and an economy with fast growing incomes (Singapore) highlight that the conventional dependency ratio substantially exaggerates the burden of the elderly.

Date: 2019
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DOI: 10.1080/13504851.2018.1537474

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