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Demographic Dividends and Households Saving in Mexico

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Part of the Demographic Transformation and Socio-Economic Development book series (DTSD, volume 6)

Abstract

The main element in the Demographic Dividends (DemDiv) is a demographic surplus of working-age population with high levels of employment and productivity, to support children and the elderly and also allowing a significant aggregate savings to be invested to enhance future economic opportunities. This chapter depicts the life-cycle income, consumption, and saving patterns of Mexican households in a context of increasing workforce and a declining ratio of demographic dependency. Since the life-cycle is a longitudinal concept and data comes from cross-sectional panels of the 1994–2012 Household Income and Expenditure Survey, 11 synthetic cohorts are drawn up. Results show that the expected dissaving-saving-dissaving hump shape does not occur. The process rather follows an M shape. Private saving understood as income less consumption is very low suggesting that the first DemDiv is not taking place and that the demographic window is being wasted.

Keywords

Gross Domestic Product Saving Rate Consumption Expenditure Current Income Demographic Dividend 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Notes

Acknowledgments

This document was supported by a grant from the CONACYT/INEGI 186319 (Project: Prospectivas sociales, económicas y de salud por cohortes de la población) and the IIEc, UNAM (Project: Cambio en la estructura por edades, ahorro y seguridad social).

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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.Instituto de Investigaciones Económicas (IIEc)UNAMCiudad de MexicoMexico
  2. 2.Department of Population StudiesEl Colegio de la Frontera NorteTijuanaMexico

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