Ñopo, H. (2020). Latin America and the end of the demographic bonus olicy Brief, 1]. Southern Voice.

Key messages

  • Latin America’s social demography is experiencing important changes. Life expectancy is increasing and fertility is dropping: thus the ‘demographic bonus’ is ending. A renewed architecture of social expenditure, in line with the new population pyramid, is called for.
  • The components of the dependency rate are moving in opposite directions. While the one for children is falling, the one for old adults is increasing. The caring needs of older adults will surpass children, requiring more than a budgetary adjustment.
  • This new reality will require addressing the intrahousehold division of labor. It is presently unfair and economically inefficient that this burden disproportionately falls on women.
  • Older adults are prolonging their active labor life, but their working conditions are far from desirable. This is a symptom of the failure of pension systems: they are not fulfilling the promise of keeping people out of poverty after retirement.
  • With workers prolonging their active life, a renewed educational system will be required, focussing on lifelong learning in a digital world.