QUES . What is Replacement Fertility Rate (RFR)? Does a decline in RFR impact demographic dividend? UPSC IES/ISS EXAM 2022 General Studies. 200 Words. 5 Marks.
HINTS:
What is Replacement Fertility Rate (RFR)?
The Replacement Fertility Rate (RFR) is the level of fertility required to maintain a stable population size in a given area, considering only births and deaths (excluding migration). This means that each generation of women has just enough daughters to replace themselves and their mothers in the population.
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Typically RFR is around 2.1 children per woman. This number varies slightly depending on a country’s mortality rates, especially child mortality rates. Higher child mortality necessitates slightly higher fertility to ensure replacement.

When the TFR matches the RFR, the population neither grows nor declines due to births and deaths.
Reaching RFR suggests a population in the later stages of the demographic transition, characterized by declining birth and death rates.
Though the global average TFR is 2.3 (slightly above RFR), many developed countries have TFRs below RFR, leading to ageing populations.
Significance of Replacement Fertility Rate (RFR)
Understanding RFR helps policymakers formulate effective policies in areas like education, healthcare, social security, and economic development.
TFR below RFR may require policies to encourage childbirth or attract immigration to address potential workforce shortages and support ageing populations. Conversely, a high TFR might necessitate investments in infrastructure and resources to sustain a growing population.
Analyzing TFR about RFR offers insights into potential population growth or decline, aiding in planning and resource allocation.
Impact of decline in Replacement Fertility Rate (RFR) on demographic dividend
A decline in the RFR can impact the demographic dividend, which is the economic growth potential that results from changes in a country’s age structure. The demographic dividend occurs when a larger portion of a country’s population is of working age, allowing for increased productivity and economic growth.
When the RFR declines, the size of the younger population decreases relative to the older population, which can lead to a shift in the age structure of the population. This can result in a smaller working age population and a larger elderly population, which can reduce the potential for economic growth and the demographic dividend.
Thus, a decline in the RFR can impact the demographic dividend by changing the age structure of the population, which can affect the size and productivity of the working-age population.