Vulnerability of Young and Old People: Is Remittances Trend Sustainable in Senegal

Latif Dramani, Université de Thiès
Dieynaba Sakho, CEPOD - Ministère de l'Economie et des Finances

Various economic programs implemented in Senegal have not yet sufficiently supported in real economic growth to meet the social demand. Indeed, the incidence of poverty remains high. The question one might ask is whether the inelasticity of economic policies against social demand is related to the lack of research tools or poor targeting. This study makes an apology a methodology that links macroeconomic aggregates and demographics. It can account for all the problems of the economic analysis of the demographics of a country, integrating the concept of life cycle and demographic dividend. The results highlight that the evolution of the first demographic dividend in Senegal is favorable for economic growth until 2050. Our estimation with the generational lifecycle model show that between 0 to 35 years, remittances are the main source of consumption followed by assets reallocation. Assets reallocation are the main source of funding for senior lifecycle deficit.

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Presented in Session 20: Economics of Aging in Low and Middle Income Countries