National Transfer Accounts Analysis for Sri Lanka
Sri Lanka has been going through a demographic transition triggered by decreasing fertility and increasing life expectancy. The demographic transition is marked by two stages. During the first stage, the drop in new births reduces the under-age dep...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2012/10/17036783/national-transfer-accounts-analysis-sri-lanka http://hdl.handle.net/10986/17988 |
| Summary: | Sri Lanka has been going through a
demographic transition triggered by decreasing fertility and
increasing life expectancy. The demographic transition is
marked by two stages. During the first stage, the drop in
new births reduces the under-age dependency ratio, while the
proportion of working age population expands. This reduction
in dependency ratio due to declining fertility, frequently
referred to as the demographic bonus, is associated with an
increased pace of economic development due to the larger
share of working age population relative to the total
population, and the smaller pool of dependents that workers
have to support. In the second stage of the demographic
transition, the consistently low fertility rates in
combination with increased life expectancy for the elderly,
lead to the relative expansion of the old-age dependency
ratio. As the demographic transition enters the second
stage, the demographic bonus deteriorates. As Sri Lanka is
going through a demographic transition, it is important to
take stock of the ways labor income is produced and consumed
by different age groups. Similarly, when a deficit or a gap
between consumption and labor income emerges, it is
important to know what type of expenditures drive it and how
it is financed. This paper documents labor income and
consumption patterns by age group in Sri Lanka, in a manner
that is comparable to work carried out for other countries
that participate in the National Transfer Accounts Project. |
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