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Understanding Demographic Dividends in Africa: The NTA Approach

Author

Listed:
  • Latif DRAMANI

    (Université de Thies, CREFAT)

  • Idossou Jean-Baptiste OGA

    (Université de Parakou)

Abstract

In this paper, we document the economic implications of changing demographic conditions in Africa. To construct support ratios, we use National Transfer Accounts (NTA) estimates of per capita labor income and consumption by age, as well as population estimates and projections provided by the UN Population Division for 16 African countries. First, we find that, on average, support ratios are rising in Africa. But compared with the support ratios in Asia and Latin America, the magnitude of those in Africa is lower because the percentage of effective workers in the total population is also low. Second, we find that human capital spending is high in countries with low fertility rates, which suggests a quantity–quality trade-off. NTA estimates also show that to capitalize on the demographic dividend, countries have to create economic opportunities for young adults. In addition, investment in human and physical capital is important to generate the second demographic dividend.

Suggested Citation

  • Latif DRAMANI & Idossou Jean-Baptiste OGA, 2017. "Understanding Demographic Dividends in Africa: The NTA Approach," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 83(1), pages 85-101, March.
    • Handle: RePEc:ctl:louvde:v:83:y:2017:i:1:p:85-101
    DOI: 10.1017/dem.2016.30
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    Citations

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    Cited by:

    1. Mesfin Mulugeta Woldegiorgis, 2023. "Drivers of demographic dividend in sub-Saharan Africa," Review of Evolutionary Political Economy, Springer, vol. 4(2), pages 387-413, July.
    2. Yukio Fukumoto & Tomoko Kinugasa, 2019. "How Different are demographic impacts on trade openness by geographic region?:Findings from Europe,Asia,America,and Africa," Discussion Papers 1912, Graduate School of Economics, Kobe University.
    3. van Tongeren, Jan W. & Bruil, Arjan, 2022. "Projections to 2025 of the household sector within the Dutch economy," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).

    More about this item

    Keywords

    Demographic transition; Labor income; Demographic dividends; Support ratio; Africa; NTA;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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