Economic Lifecycle and Demographic Dividends: Evidence and Implications for India

Laishram Ladusingh, International Institute for Population Sciences (IIPS)

This paper adopts the National Transfer Accounts (NTA) framework which relates demographic dividends to per capita age profiles of labor income & consumption, public transfer and intergenerational familial support. The findings suggest that in case of India the period of first demographic dividend is 1975-2045 and second dividend gain prominence afterwards and last till 2070. During 1975-2070 the period of window of opportunities, the gains in income per equivalent consumer contributed by the first and the second dividends are 19.4 and 22.4 percents respectively. It is further noted during this period that monetary transfer to children relative to labor income declines while assets and wealth accumulation relative to labor income accelerates.