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Why Is Dependency Ratio Important In Nicaragua?

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In Nicaragua, the total dependency ratio is 54.1%. Breaking that down further, the youth dependency ratio is 46.3% and for the elderly it is 7.8%. The ratio for youth is larger because the country is in stage three of the demographic transition, meaning that a greater portion of the population is children around ages 0-19. Also because of Nicaragua's spot in the demographic transition, the elderly dependency ratio is low. As the country progresses toward stage four and a possible stage five, this number will become larger, putting a strain on the working age people to support the large amount of elderly people. In Nicaragua, there are about 2.953 million people in the labor force. Broken down by occupation, 31% are in agriculture, 18% in industry,

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