Thursday, March 25, 2010

The dependency ratio

The dependency ratio usually refers to the proportion of people not in the work force to those in the work force (currently 1.94 in the US).

We are entering a new era where another dependency ratio is coming into focus.

The proportion of govt employees to private sector employees (about 1 in 9 employed persons are employed by govt), and also the ratio of govt sector pay to private sector pay (hint: it has been going up and is about 2x).

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