Transition from Demographic Bonus to Demographic Dividend in Bangladesh: Search for Key Elements to Grasp the Opportunities
DOI:
https://doi.org/10.54097/p9vhqx66Keywords:
Demographic Dividend, Demographic Transition Dynamics, Human Capital Formation, Youth Employment Dynamics, Economic Growth and DevelopmentAbstract
In this study, we assess the shift from demographic bonus to demographic dividend in Bangladesh and the elements needed to harness this opportunity for economic development. Using a mixed-method approach, the study employs quantitative analysis based on 62 survey participants and qualitative insights from 18 key informant interviews with experts, policymakers and stakeholders. The results show that Bangladesh has a burgeoning working-age population with considerable economic potential; however, it is not fully exploited due to the lack of policies to absorb young people into the workforce, the mismatch between education and skills required in the job market, and the lack of investment in skills. A positive correlation between education, income and productivity is found in quantitative analysis, with regression analysis confirming that the growth of the working-age population and human capital investment are key drivers of GDP growth. Qualitative insights also reveal the need for policy coherence in education and vocational training, and embracing the digital economy. Bangladesh's ability to harness a demographic dividend, the study argues, hinges on strategic investments in human capital, job creation, and policy reforms to ensure a productive inclusion of the growing population into the workforce, with significant lessons for other developing countries with similar demographic dynamics.
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