‘Population dividend’ refers to

The term ‘population dividend’ or ‘demographic dividend’ refers to the economic growth potential resulting from shifts in a population’s age structure [7]. Specifically, it occurs when the share of the working-age population (typically 15–64 years) is larger than the non-working-age share, which includes children and the elderly [4]. This shift is often triggered by a ‘youth bulge’ where a high proportion of the population enters the productive workforce [4]. As the dependency ratio declines, the increased labor supply and higher savings rates can spur rapid economic productivity and wealth accumulation [5]. Therefore, the concept is fundamentally linked to a youthful age structure that provides a larger workforce relative to dependents [7]. While an aging population is a later stage of demographic transition, the dividend itself is driven by the productive capacity of the younger, working-age cohorts [2].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > Recent demographic trends > p. 259
2. [7] https://www.investopedia.com/terms/d/demographic-dividend.asp
3. [4] https://www.ncbi.nlm.nih.gov/books/NBK513092/
4. [3] https://blogs.worldbank.org/en/developmenttalk/youth-bulge-a-demographic-dividend-or-a-demographic-bomb-in-developing-countries
5. [5] https://policy.desa.un.org/publications/frontier-technology-issues-harnessing-the-economic-dividends-from-demographic-change
6. [2] https://en.wikipedia.org/wiki/Demographic_dividend