Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Santa Maria Bulacan Campus

Demographic Structures

Demography ( Demographic )

- It encompasses the study of the size, structure and distribution of

populations and how populations change over time due to births,
deaths, migration and aging.
- studies of a population based on factors such as age, race, sex,
economic status, lifestyle, level of education, income level and
employment, among others.
- Relies on large data sets that are primarily derived from censuses and
registration statistics (i.e., birth, death, marriage registrations)

 Governments, corporations and non-government organizations use

demographics to learn more about a population's characteristics for
many purposes, including policy development and economic market
research.

 It is frequently used as a business marketing tool to determine the best

way to reach customers and assess their behavior.

 Segmenting a population by using demographics allows companies to

determine the size of a potential market.

 The use of demographics helps to determine whether its products and

services are being targeted to that company's most important
consumers.

Age
When it comes to age, job, and health opportunities can be different
depending on how old you are. Populations are broken down into different
cohorts based on their age. The people of each generation all live through
similar events and similar time periods that affected their lives. Elderly people
have more difficulty getting health insurance because they are more likely to
get sick or to have pre-existing conditions. They're more likely to need the
services of health care facilities than younger people. The number of people
over the age of 64 is rapidly growing as the baby boom population gets older.
By 2025, the percentage of people over 64 in North America is expected to
double. This means more strain on the healthcare system. But the standard
quality of life has gotten better over the years. So people are living healthy lives

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longer and are able to work for more years to continue contributing to the
economy, and potentially relieve some of the strain on society. Perhaps age
regulates the behavior of different generational cohorts or groups of people.
You also have to consider how a loss of activity affects the older population and
how they can replace that social interaction. Or perhaps the older generation is
separating from society so they can have more time for self-reflection. Or
maybe they're making decisions that preserve that same basic structure of their
lives that they have always lived. No matter the theory, improvements in global
health have enabled the older generation to continue to be a valuable
resource in society.

Race
Race is a social construction that puts people into groups based on
observed or perceived differences in physical traits. Racial formation theory
looks at the economic, social, and political factors that result in socially
constructed races. In the United States we group people into white, Latin
American, African American, and Asian groups. In other countries there are
different divisions of people based on other characteristics. For example, in
South America what we would consider Latin American is broken down into
many other groups.

Ethnicity
Ethnicity is also socially defined, but instead groups people based on a
shared language, or history, or nationality. There are statistical differences
between different racial and ethnic groups. Racial and ethnic minorities, except
for Asian Americans, statistically tend to have bigger families, less access to
healthcare, higher incarceration rates, lower paying jobs, and higher school
dropout rates. Most of these differences come from the differences in education
and easy opportunities afforded to different racial and ethnic groups.

Immigration
Immigration affects population; happens when one enters the country of
destination but not permanently; refers to population transfers or people
moving, typically from one country to another but also within countries.
Immigrants often face discrimination in their host countries. Discrimination
is the unjust treatment of a category of people simply because they belong to
that category. Though some discrimination is based on race or ethnicity, the
immigration process in many countries is easier for some ethnicities than it is for
others. Much of the discrimination is based on an innate fear of anything
different. The citizens of the host country fear the change that immigrants bring

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with them. Sometimes immigrants can over tax social services in certain areas if
too many people move at the same time, and sometimes they can cause job
shortages. But they can also help the host country by providing labor in fields the
native citizens don't want to do. People who immigrate looking for better jobs
and better lives are often not as picky as the native citizens.

Sex , Gender, Sexual Orientation-

Sex is a biological determination of male or female.
Gender on the other hand, is a social construction of how a person of a
specific sex should behave. Every person has the gender they identify as and
then the gender they present to society. It is expected for females to identify as
women and behave as women, and the same is true for males acting as men.
Sexual orientation is also a socially constructed grouping. There are two
parts of sexual orientation. The gender you attracted to, and the gender you
have sex with. Traditionally, men are supposed to be attracted to women, and
women are supposed to be attracted to men. But people in today's society do
not always follow those so-called rules, sparking fear in many people. It is often
this fear of change that causes discrimination of minority groups. And more
importantly, it is treated differently because of some physical or cultural
characteristic. Ironically, even though women make up more than half the
population numbers wise, they are treated as a minority with lower paying jobs
and lower expectations than men. Men however, don't have it easy either.
Because they have a very narrow definition of masculinity that they are allowed
to be in society. Discrimination based on sexual orientation is also abundant in
jobs and healthcare. Socially constructed expectations of whom a person
should be limits every individual by prohibiting certain behaviors or ways of life.

Literacy and education

a person ( 7 yrs and more) is considered as literate if he or she can read
and write with understanding in any language.

Social Mobility
change of status

Demographic Processes

 Fertility  Social Mobility

 Marriage  Mortality
 Migration

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
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Demographic indicators:

 Population Statistics
- Population size
- Population density
- Sex ratio
- Dependency ratio
 Vital Statistics
- Birth Rate or Fertility Rate - total number of children born by a women
at appoint of time during her child bearing age ( 15-45 years )
( crude birth rate , general fertility rate, age-specific fertility rate, total
fertility rate )
- Death Rate or mortality- refers to the number of deaths
( crude death rate, infant mortality rate, life expectancy )

Demographic Transition Model- which helps explain and make sense of

changes in population demographics.

Stages of the Demographic Transition Model

 In Stage 1, which applied to most of the world before the Industrial
Revolution, both birth rates and death rates are high. As a result,
population size remains fairly constant but can have major swings with
events such as wars or pandemics.
 In Stage 2, the introduction of modern medicine lowers death rates,
especially among children, while birth rates remain high; the result is
rapid population growth. Many of the least developed countries today
are in Stage 2.
 In Stage 3, birth rates gradually decrease, usually as a result of
improved economic conditions, an increase in women’s status, and
access to contraception. Population growth continues, but at a lower
rate. Most developing countries are in Stage 3.
 In Stage 4, birth and death rates are both low, stabilizing the
population. These countries tend to have stronger economies, higher
levels of education, better healthcare, a higher proportion of working
women, and a fertility rate hovering around two children per woman.
Most developed countries are in Stage 4.
 A possible Stage 5 would include countries in which fertility rates have
fallen significantly below replacement level (2 children) and the elderly
population is greater than the youthful population.

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Santa Maria Bulacan Campus

Demographic trends

describe the historical changes in demographics in a population over

time.

The Value of Demographic Trends

Staying up to date on the latest demographic trends enables

organizations to identify existing and emerging markets for their products and
services. By evaluating customers’ and prospects’ demographic trends,
business decision-makers can identify changing needs in the marketplace and
adjust to them. Demographic trends can also help organizations spot future
spending trends. Demographic trends are also important, since the size of
different demographic groups changes over time as a result of economic,
cultural and political circumstances. This information helps the company decide
how much capital to allocate to production and advertising

Labor market trends

 An estimated 5.492 million 0.01% and Service industry

children aged 5 to 17 years
were working in 2011
according to the preliminary
results of the 2011 Survey on
Children (SOC)
 Population with age 15-64
increased to 12.2 million as of
2010
 Self-employed workers
decreased to 27.5% from
29.5% as of July 2012.
 Labor and employment in the
Agriculture decreased by
12.8%, Industry decreased by
increased by 12.6%
 Men continue to dominate the
workforce as they accounted
for more than 60% of total
employed over the past ten
years
 Changing households - more
and more families choose, or
need, to have two parents
working.
 Higher level of education
required

Product and Labor Markets

Product market

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- A product market is where goods and services produced by businesses

are sold to households.
- It includes a broad group of products that satisfy a general, yet similar,
need. The products exchanged in the Product Market are the physical
products like food, metals, and electricity.
- refer to markets in which all kinds of goods and services are made and
traded, for example the market for airline travel; smart-phones, new cars;
pharmaceutical products and the markets for financial services such as
banking, mortgages and pensions.

In the Product Market different kinds of products are exchanged.

According to these products, Product Market can be classified into following
three categories:

Convenience Products Market

Convenience products include food products, medicines, newspapers
etc. The Convenience Products are purchased on a regular basis and the prices
of the Convenience Products are relatively low compared to other goods like
Shopping Goods and Specialty Goods. Market for the Convenience Products
requires intense distribution of products.

Shopping Goods Market

The products that are exchanged in the Shopping Goods Market are
clothes, furniture and other products that are bought less frequently. People buy
this kind of products after gathering information about all the brands available
in the market. The demand for the Shopping Goods is determined not only by
the economic factors but also by the social and cultural factors. The distribution
of products in the Shopping Goods Market is less intensive compared to
Convenience Product Market.

Specialty Products Market

The Specialty Products are those, which are bought at long intervals. The
examples of this type of product are art pieces, jewelry and real estate property.
As these products are bought seldom, the exclusivity and the originality of the
products are essential for gaining customer's preference. The customers of this
Specialty Product Market tend to be loyal to the brand and are not inclined to
substitutes.

Labor market

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- a set of social mechanisms though which labor is bought and sold

- the market in which workers compete for jobs and employers compete
for workers
- it provides the structure through which workers and employers interact in
relation to the jobs, working conditions and pay
- a market where people offer their skills to employers in exchange for
wages, salaries and other forms of compensation. Participants in the labor
market include any person who is seeking to work for compensation and
any person or organization that is looking for people to perform labor.

Primary labor market

- Jobs tend to be highly skilled and highly paid, have clear lines of
advancement, and offer greater than average degrees of training and job
security to workers.
- a market that generally consists of high-wage paying jobs, social
security, and longer-lasting careers, but others define it as jobs that
"require formal education", but in addition to white collar jobs like
teaching, accounting, and the law, it also includes the skilled trades like being
a plumber or a photocopy repair technician. It is contrasted by the secondary
labor market, which usually consists of low-wage paying jobs, limited mobility
within jobs, and temporary careers. The primary and secondary labor markets
are intended for division of the standard of jobs within labor (heavy work)
services.
- the workforce as a whole in a primary marker is motivated to serve their
employer because of health benefits, insurance policies, pension wages and job
security. The job market here consists mainly of white- and blue-collar jobs. In the
primary labor market, the employees are always trying to prove themselves to
their employers by portraying their skills and educational credential.

Secondary labor market

-Jobs tend to be low in pay, prestige, and security, and offer little
opportunity for advancement. They also typically have a high turnover.
- the labor market consisting of high-turnover, low-pay, and usually part-
time or temporary work. Sometimes, secondary jobs are performed by high

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school or college students. The majority of service sector, light manufacturing,

and retail jobs are considered secondary labor. Secondary market jobs are
sometimes referred to as “food and filth” jobs, a reference to workers in fast
food, retail, or yard work, for example.
- A secondary-market job is distinct from a "secondary worker". The latter
term refers to someone in a family (traditionally, the wife or a child) who earns a
smaller income than the "breadwinner" in order to supplement family income.

Socio-Economic Groupings

Socio-economic Group

It refers to a person's position in society's structural and functional systems.

These are the divisions of people by income and occupation.

Formation of a socio-economic group for a person is based on data on

the person's main type of activity, occupation, occupational status and industry.
It is an economic and sociological combined total measure of a person's work
experience and of an individual's or family's economic and social position in
relation to others, based on income, education, and occupation.

Categories

A- Higher managerial, administrative, professional

e.g. Chief executive, senior civil servant, surgeon
B - Intermediate managerial, administrative, professional
e.g. bank manager, teacher
C1- Supervisory, clerical, junior managerial
e.g. shop floor supervisor, bank clerk, sales person
C2 - Skilled manual workers
e.g. electrician, carpenter
D- Semi-skilled and unskilled manual workers
e.g. assembly line worker, refuse collector, messenger
E - Casual laborers, pensioners, unemployed
e.g. pensioners without private pensions and anyone living on basic
benefits

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
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Distribution of income and wealth

Distribution of Income
Income distribution reveals what percentage of individuals are at various
wage levels, information that can reveal more about overall wage patterns
than average income can.

Income
is a net total of the flow of payments received in a given time period

Income is a flow of money going to factors of production:

1. Wages and salaries paid to people from their jobs

2. Money paid to people receiving welfare benefits such as the state
pension and tax credits
3. Profits flowing to businesses and dividends distributed to shareholders
4. Rental income flowing to people who own and lease out property
5. Interest paid to those who hold money in deposit accounts or who own
bonds etc.

Income can be in the form of wages, rents, dividends, interest, pensions, benefit
payment, income from self employment, inheritance.

Income distribution can be shown according to socioeconomic characteristics:

- Ethnicity
- Geographic region
- Gender
- Type of job

Distribution of wealth
Distribution of wealth is a comparison of the wealth of various members or
groups in a society.

Wealth
is an accumulated store of possessions and financial claims. It may be given a
monetary value if prices can be determined for each of the possessions.

Wealth consists of those items of economic value that an individual owns, while
income is an inflow of items of economic value.

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Wealth is a stock concept – it is a large amount of money or valuable

possessions and can be held in different ways:

1. Savings held in bank deposit accounts

2. Ownership of shares issued by listed companies and equity stakes in
private businesses
3. The ownership of property
4. Wealth held in bonds
5. Wealth held in occupational pension schemes and life assurance
schemes

Income Inequality

Income inequality
- refers to the extent to which income is distributed in an uneven manner
among a population.
The level of inequality of income and wealth can be measured in several ways:
 The share of income going to different groups in society, e.g. the poorest
20% of households at the bottom of the income scale through to the
richest 20%
 The proportion of all households who live on an income below an official
poverty line

Key causes of income and wealth inequality

Inequality can arise from differences in

 Education (school, college,  Type of job
degree)  Ownership of financial assets
 Skills and training  Inheritance
 Experience / age  Pension rights
 Unemployment

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References:

https://prezi.com/6dulrv3y7hpm/copy-of-demographic-structures/

http://marketresearchworld.net/content/section/16/74/

http://www. Britanica.com

https://www.tutor2u.net/economics/reference/income-and-wealth

https://www.intelligenteconomist.com/equitable-distribution-of-income/

http://study.com/academy/lesson/labor-market-definition-theory-quiz.html

http://www.businessdictionary.com/definition/labor-market.html

https://en.m.wikipedia.org/wiki/Marketplace

http://www.economywatch.com/market/market-types/product-market.html

https://en.m.wikipedia.org/wiki/Primary_labor_market

https://en.m.wikipedia.org/wiki/Secondary_labor_market

http://www.yourarticlelibrary.com/human-resources/what-are-the-different-
characteristics-of-labour-markets/2446/

https://en.wikipedia.org/wiki/Demographic_transition

https://www.slideshare.net/vineetharadhakrishnan35/demography-66405879

https://www.slideshare.net/ZaryabZ/socio-economic-groups-
61274291?qid=8bf428c1-5a92-49cd-89c2-
d4769ed71b0c&v=&b=&from_search=2

http://inequality.org/income-inequality/

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