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120 Unit 2 Population and Migration%u00a0Patterns and%u00a0Processeshigh elderly dependency ratio, such as Japan and Italy, providing medical services and caring for elderly people become critical issues.World Dependency CategoriesAs Figure 8.2 shows, the Population Reference Bureau has identified the following five different dependency categories:High child dependency: These countries have a high youth dependency ratio (higher than 45 percent) but a low elderly dependency ratio (lower than 15 percent). Most African countries and a number of other developing countries, such as Pakistan, fall in this category.Moderate child dependency: These countries have a moderate youth dependency ratio (29%u201345 percent) and a low elderly dependency ratio (lower than 15%u00a0percent). Most countries in Latin America, South Asia, Southeast Asia, and Southwest Asia are in this category.Double dependency: These countries have a moderate youth dependency ratio (29%u201345 percent) but a high elderly dependency ratio (15 percent or higher). About a dozen countries, including the United States, France, Australia, New Zealand, and Argentina, are in this category.High elderly dependency: These countries have an aging population. Their youth dependency ratio is lower than 29 percent, but their elderly dependency ratio is high (15 percent or higher). This category includes most European countries, Canada, Cuba, China, Japan, South Korea, and Thailand.Low overall dependency: This category includes only four Middle Eastern countries: Kuwait, Qatar, the United Arab Emirates, and Oman. All of these countries have experienced an influx of immigrant workers over an extended period of time, which means that their working-age population is relatively high. As a result, both their youth and elderly dependency ratios are low (lower than 29 percent and 15 percent, respectively).One factor that complicates discussions of age dependency ratios is the fact that the definition of %u201cworking age%u201d changes across countries and over time. Many people still work well past age 65 either by choice or out of necessity. In countries with a large number of working elderly, for example, Japan, the dependency ratio may overestimate the actual social burden placed on working-age people.Dependency RatiosOne implication of a country%u2019s age structure is the dependency ratio, or the number of dependents in a population that each 100 working-age people (ages 15%u201364) must support. Dependents are people who are younger than 15 years of age and people who are older than 65, roughly corresponding to those too young to work or retired. The dependency ratio is usually calculated by dividing the number of dependents by the working-age population. So, for example, if a country has 15 million young dependents, 5 million older dependents, and 40 million people of working age, then its dependency ratio is+ = (15 5)4050 percentIn other words, every 100 working-age people in this country will support 50 dependents. The higher the dependency ratio, the heavier the burden of support. The value of this ratio varies considerably from one country to another. Countries with a high dependency ratio, such as Somalia, Guatemala, and Syria, may need to devote a considerable amount of resources to supporting its people, which could divert money from investments and economic development. Because the younger and older members of a society have very different needs, we may also calculate the dependency ratio separately for these two groups. The youth dependency ratio focuses on those too young to work (usually people younger than 15 years old). The elderly dependency ratio focuses on older dependents. In countries with a high youth dependency ratio, such as Afghanistan, meeting the needs of a large number of young people for education and employment can pose a major challenge. In countries with a TERMS TO KNOWdependency ratio: The number of dependents in a population that every 100 working-age people (ages 15 to 64 years) must supportyouth dependency ratio: The number of young dependents in a population (usually people younger than 15 years of age) that every 100 working-age people must supportelderly dependency ratio: The number of elderly dependents in a population (usually people older than 64 years of age) that every 100 working-age people must support%u00a9 Bedford, Freeman & Worth Publishers. For review purposes only. Do not distribute.