THE ADVANTAGES OR IMPORTANCE OF AGE DISTRIBUTION OF POPULATION. Determination of tax: With the knowledge of age distribution of the population, the expected tax can easily be determined based on the number of people in the working group or labour force.
Knowledge of dependent: The number of the dependents (0-17 years and 60 years and above) can be determined easily through age distribution in a population.
Size of labour force: With a good age distribution, the number of people working can easily be determined.
Determination of government budget: The age structure of a population will assist government to draw up its budget. If for example the population of the children (0-17 years) is very high,
it means the government will need to vote a huge amount of money to provide goods and services required by this age group than for other groups.
Production pattern: The age distribution of the population will help the manufacturer to determine the pattern of production to meet the needs of a particular age group,
It determines the nature of market: The understanding of the age structure of a population will help to determine the nature of market, e.g. a population with high number of children will create more market for children goods and services.
It determines the birth and death rates: The age structure of a population will determine the rate of birth and death, e.g. when the population of old people is higher than that of other groups, it means the death rate is going to be higher.
It determines the standard of living: The age structure of a given population will reveal the income per capital and standard of living.
While high dependency population reduces income per capital and standard of living, high working population or labour force increases income per capital and standard of living.