Ch 12 – Population, Education, and human capital
Population is the backbone of development as it provides the labour force and educating the
population increases human capital, which allows the economy to utilize and gain knowledge
and development positive externalities.
A Population Problem?
Malthusian relation: the poorest of the economy have the highest population growth rates.
So does low income lead to high populations, or do high populations lead to low income?
*Low income leads to increased population growth* (though there is a lag between increasing
the income and seeing a decline in population growth).
Natural and Actual Pop. Growth Rates
Natural pop growth = (CBR – CDR)/10
- CBR- crude birth rate (live births per 1000 population per year)
- CDR- crude death rate (deaths per 1000 population per year)
Actual pop growth= (CBR – CDR)/10 + immigration - emigration
- Migration is per 100 population
Demographic Transition (DT)
A hundred years ago, CDR almost cancelled out CBR so that there was little change in net
population. What changed since then to allow population explosion?
- DT refers to when both CDR and CBR fall to a rate less than 20 per 1000
- DT and now-developed countries
o Rapid economic growth led to increased income, living standards, and education.
People started having fewer children, reducing birth rates. Death rates also decreased
with improvements to healthcare. As medical advances were distributed (ex:
vaccines) to developing countries, their death rates also fell.
- DT and less developed counties
o Rapid economic growth did not occur, was very slow, or was divided due to dualistic
nature. CBR remained high, CDR fell due to developed nations medical attention.
This caused extremely rapid population growth rate.
- “Good” low population growth rates occur at low CBR and low CDR; “bad” low population
growth rates occur at high CBR and high CDR (ex: as a result of HIV/AIDS deaths)
Determinants of CBR
- Fertility rate refers to average number of children a woman is expected to have
- Family income: increased income leads to reduced fertility rates
- Level of educational attainment by women: increased education in women leads to reduced
- Cultural factors: though not as important a factor in determining fertility rates, cultural and
religious factors still have an effect
- Less developed economies: children work to provide labour (at home and in
agriculture/industry) and family income, take care of parents in their old age (especially in countries lacking old age security), and infant mortality is higher so families have more
children to ensure that at least some, if not all, survive to maturity.
- Developed countries: children become more of an economic burden than benefit; they must
be fed, clothed, and put through school, often engage in extracurricular activities, and
require time and att