Demographic transition and economic growth in Benin Benin Team 1/16/2019 NTA 10, Beijing, China.

Conclusion and Project Work surface Introduction Data Principal results Conclusion and Project NTA 10, Beijing, China. 1/16/2019

1.1 Meaning and importance of demographic dividend 1. Introduction 1.1 Meaning and importance of demographic dividend The mean demographic dividend growth rate resulting from changes in the age structure of the population of a country (Bloom et al, 2002). A demographic dividend occurs when the drop in the birth rate leads to changes in the age distribution of a population. NTA 10, Beijing, China. . 1/16/2019

What about the demographic dividend in Benin? Introduction (2) Demographic transition, or the point at which the rate of birth and death move from a high level to a low level, is a critical stage of development opportunities for families and countries. If countries can plan and make necessary investments in young people during the demographic transition, they can create a virtuous circle of improving education, human capital, and financial sector, by extension economic productivity (Mason Lee and Lee 2008). What about the demographic dividend in Benin? NTA 10, Beijing, China. 1/16/2019

1.2 Country Informations Population structure (2007) Total population (Thousands) : 8 407, 482 Population growth rate (%) : 3,01 Total fertility : 5,31 Life expectancy at birth : 56 Child dependency ratio : 83 Old-age dependency ratio : 5 GDP per capita, PPP annual growth (%) : 1,51 Official exchange rate (Local Current Unit per USD period average) : 6,1 NTA 10, Beijing, China. 1/16/2019

Structure of population The age structure of the population indicates that as the age increases, the number of population by age decreases. People aged 52 and over are in a very small proportion compared to the age groups 16-48 years. Children 0-16 are also important in effective. The area of ​​the population aged 16-48 years is less than the sum of the areas of children and the elderly NTA 10, Beijing, China. 1/16/2019

Fertility rate and mortality rate in total are dropping in Benin Specifically, Benin has seen an increasing fertility rate from 1950 to 1990 when it reached a peak of 7 children per woman. From 1990 to 2010 the Benin has a fuck its fertility rate. In addition, the mortality rate over the period 1950-2010 is continuously declining. We have to keep in mind that low and declining fertility is largely associated with increased human capital investment. NTA 10, Beijing, China. 1/16/2019

The window of the demographic transition began for Benin The window of the demographic transition began for Benin. Productivity in the age group of the active population is actually run out of steam in the financing of the consumption of the elderly and children if public policies are not implemented. This is due to the economic cycle of life through the profiles of consumption and production. Indeed, the economic life cycle is a biological consequence: children and young people are not productive not; they work when they are physically and mentally mature (UN, 2013). NTA 10, Beijing, China. 1/16/2019

2. DATA Household Data survey EMICoV (integrated modular survey of living conditions of households, INSAE: 2007). EMICoV survey provides information on households and his members characteristics, and some information on labor market. Data from national accounts for 2007, (INSAE,2013). (INSAE, 2009 : Social dashboard) : School enrollment, primary, public by age and level, budget of the health sector at 2007. Health sector statistics, 2010. NTA 10, Beijing, China. 1/16/2019

DATA (Continued) Report of document of strategy for growth and poverty alleviation, 2007 : Estimating of health structure cost by program. Survey of World Population Prospects (2013, ). NTA 10, Beijing, China. 1/16/2019

3. PRINCIPAL RESULTS NTA 10, Beijing, China. 1/16/2019

3.1 Per Capita labor income profiles, smoothed At 16 in Benin, young people work. However, this work is not done in administration. It is rather self-employment or informal activities. Income is increasing as the age evolves to peak 48 years when we reach the level of the largest income. However, the peak shape of the curve indicates that the age group of 48 years who have a high income is a very small number. From 49 years, labor income drop continuously with increasing age, but with a slight increase in income for self-employment. NTA 10, Beijing, China. 1/16/2019

3.2 Per capita private health expenditure profile Children and the elderly have a higher consumption than the working-age population health. NTA 10, Beijing, China. 1/16/2019

3.3 Per capita private education expenditure profile NTA 10, Beijing, China. 1/16/2019

3.4 Public expenditures profiles (CGE, CGH and CGX) by age, smoothed The State of Benin invests with partners in the education and health of young people. However, for health, it is essentially the child health programs that cover the ages of 0-5 years. There spontaneous youth programs and especially for. There is a lack of health program for the elderly which is why the value of private expenditure on health in this age group. NTA 10, Beijing, China. 1/16/2019

3.5 Aggregate consumption expenditure profiles In general, we note that the aggregate consumption in education and health follow trends by UN (2013) with the strong hypothesis of biological evolution individuals. Thus, individuals in their young ages have a high consumption of health and education to decrease progressively with advancing age. NTA 10, Beijing, China. 1/16/2019

3.6 Per Capita consumption and labor income profiles This picture shows that at 29 years old consumption and income equalize and it is the same situation as 64 years. The age group 30-63 years old is that which liberates surpluses while other age groups generate deficits (see next Chart ). NTA 10, Beijing, China. 1/16/2019

3.7 Life cycle deficit aggregate NTA 10, Beijing, China. 1/16/2019

In other form….. NTA 10, Beijing, China. 1/16/2019

3.8 First demographic dividend estimated Since 1999, Benin had begun using his demographic dividend . NTA 10, Beijing, China. 1/16/2019

Summary Heading Total Deficit from 0 to 29 1248,20 Surplus from 30 to 61 -397,51 Deficit, 62 + 27,68   Total deficit 1275,88 Surplus, total Difference 878,37 NTA 10, Beijing, China. 1/16/2019

4. Conclusion and Project Benin can enjoy its demographic dividend until 2100. Before 1990 the value of the first dividend was negative. The dependency ratio was still high and inactive population was a burden to the workforce. The window of opportunity is available between 1990 and 2100. Over this period, the first dividend was estimated at 0.25%. It would have reached its peak between 2020 and 2030 with an estimated average 0, 50%. This implies that the guidelines on demographic policy must take into account the dynamics of the age structure in order to implement efficient policies. NTA 10, Beijing, China. 1/16/2019

Investments in youth education remains low because there is significant private youth education spending. Offers education should primarily aim at harmony with the labor market. The expansion jobs contribute significantly to economic growth in Benin. In addition, the deficit itself is generated by young people would be to significantly reduce domestic savings hence the limited availability of capital for investments economically-motor growth. NTA 10, Beijing, China. 1/16/2019

1- Release of SAM for Benin, 2007 Project 1- Release of SAM for Benin, 2007 2- Estimation of BENIN’s life cycle deficit financing NTA 10, Beijing, China. 1/16/2019

Demographic transition and economic growth in Benin Benin Team 1/16/2019 NTA 10, Beijing, China.