Demographics and Human Capital Development in Mexico

Mexico, like China, is about to undergo a stunning demographic transformation. Today, there are nine Mexican children for every elderly adult. By mid-century, there will be as many elderly adults as children. The Mexican government has asked GAI to examine the human capital implications of Mexico's looming age wave. The goal is to help policymakers capitalize on the first "demographic dividend" phase of Mexico’s aging in which youth dependency will fall rapidly while old-age dependency still remains low. The study will pay special attention to how demographics may help or hinder policies aimed at boosting investment in human capital and productivity-enhancing technologies—and how such policies can be retooled to be more effective.