Nexus between Demographic Dividend, Human Capital and socio-economic development: Mediating role of Labor force participation

Abstract

Study in hand is planned to dig out the important segment of society i.e. Demographic Dividend that is an accelerating force for socio-economic development. Demographic Dividend is a situation in which working age population increased and dependency ratio is decreased. This working force is a human capital for any state, its meticulous utilization through labor force participation brings development in state. The demographic dividend is a phase of high socio-economic acceleration that associated with the low fertility and mortality rate and the specially working age group of population is prominent. Developed and industrial countries utilize this demographic transition and used the productive age group for the development of the countries in the form of labor force participation, social capital and human capital development. But the developing countries face the issues that are associated with the demographic dividend such countries do not use their youth potential for the socio-economic development, and facing the problems of population burden. The major concern of the study is to explore the reasons behind the demographic transition and utilization of existing working age population for the sake of development in social and economic sphere by developing human Capital and labor force participation. Study in hand was conducted in three districts Rawalpindi, Faisalabad and Multan from geographically dividend zones of Punjab, Pakistan. 520 respondents sample was selected with the help of Taro Yamani formula. Mediation analysis performed for explaining the relationship among different variables that shows a significant association. Inferences depicts that Pakistan currently had a window for opportunity in the form of demographic dividend. Dividend can only be achieved through utilization the potential of youth by forming human capital in the form of skill development and inclusion of youth into labor market.