40 The Demographic Dividend 80 70 10 RANDMR1274-2. 12 90 !60 .e tc I!! 50 30 20 10 --.....i --""------i. 1 o K.._..i-_,_...... 30-34 10-14 15-19 20-24 25-29 35-39 4o-44 45-49 50-54 55-59 60--64 65+ Age group 4 SOURCE: International Labour Office (1996). Figure 2.12-Labor Force Participation by Age Group, inVarious Regions of the World, 1990 themselves more likely to have been brought up in small families, they are more likely to be educated. This increases their productivity inthe labor market, leading toward a stronger workforce and smaller families. Savings. The demographic transition also encourages the growth of savings, thus improving a country's prospects for investment and growth. Again, there is an accounting effect as well as a behavioral effect at work. The young and the old consume more than they duce, whereas working-age people tend to have a higher level of nomic output and also a higher level of savings (Higgins, 1998; Higgins and Williamson, 1997; Kelley and Schmidt,, 1996; Lee, Ma-
40 The Demographic Dividend 90 80 70 RANDMR1274-2. 12 !60 .e I!! 50 tc 30 20 10 o K.._..i-_,_...... --.....i --""------i. 1 10-14 15-19 20-24 25-29 30-34 35-39 4o-44 45-49 50-54 55-59 60--64 65+ Age group SOURCE: International Labour Office (1996). Figure 2.12-Labor Force Participation by Age Group, inVarious Regions of the World, 1990 themselves more likely to have been brought up in small families, they are more likely to be educated. This increases their productivity inthe labor market, leading toward a stronger workforce and smaller families. Savings. The demographic transition also encourages the growth of savings, thus improving a country's prospects for investment and growth. Again, there is an accounting effect as well as a behavioral effect at work. The young and the old consume more than they duce, whereas working-age people tend to have a higher level of nomic output and also a higher level of savings (Higgins, 1998; Higgins and Williamson, 1997; Kelley and Schmidt,, 1996; Lee, Ma- 10 4
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