how to calculate dependency ratio in STATA

[Olive Bat]

Please let me know how to calculate dependency ration in STATA.. is the command below correct

bys ScheduleNo: egen Age_Working = count(B2Q1) if Age>=15 & Age<=64
bys ScheduleNo: egen count_Age_Working= max(Age_Working)
recode count_Age_Working (.=0)
bys ScheduleNo: egen Age_Dep = count(B2Q1) if Age<=14 | Age>=65
bys ScheduleNo: egen count_Age_Dep= max(Age_Dep)
recode count_Age_Dep(.=0)
gen DRatio = (count_Age_Dep/count_Age_Working)*100
recode DRatio(.=0)

[Nick Cox]

After 25 posts you should have read all the way down to https://www.statalist.org/forums/help#spelling in the FAQ Advice.

Otherwise please note what I said on your last thread. No data example here. What is the dependency ratio (not ration) any way? What is B2Q1 any way? The only way anyone could know is that they have worked on the same dataset as you.

[Olive Bat]

Thanks Nick got it... I am trying to calculate dependency ratio on "stata"..
ScheduleNo - common identification for household units ; B2Q1 :individual serial number.. i want to know what is the dependency ratio in each household.. so ran this command

bys ScheduleNo: egen Age_Working = count(B2Q1) if Age>=15 & Age<=64
bys ScheduleNo: egen count_Age_Working= max(Age_Working)
recode count_Age_Working (.=0)
bys ScheduleNo: egen Age_Dep = count(B2Q1) if Age<=14 | Age>=65
bys ScheduleNo: egen count_Age_Dep= max(Age_Dep)
recode count_Age_Dep(.=0)
gen DRatio = (count_Age_Dep/count_Age_Working)*100

i just wanted to confirm if this is fine?

[Nick Cox]

Again, please explain dependency ratio.

[Olive Bat]

dependency ratio is dependent population / working population *100

[Andrew Musau]

It appears that you have data on households, so I do not see how the age dependency ratio is useful in this context. For practical purposes, this is a macro-level variable and is useful if comparing countries. For households, children who are of working age usually move out of the household and have their own families. Their continued presence in the household could in fact signal that there are dependent on other household members. Households have either one or two parents present, so a count of the number of children living in the household should be a good proxy for what you need.

[Nick Cox]

With some guesses, I get

bysort ScheduleNo : egen numerator = total((Age <= 14 | Age >= 65) & Age < .)
by ScheduleNo : egen denominator = total(inrange(Age, 15, 64))
gen wanted = 100 *  num / den

[Olive Bat]

Thank You nick .. .. you made my task easier.. Andrew i thought of looking something on remittance use so thought of taking dependency ratio .. and i agree with your..point too.. my data is both at individual and household level .. though my main analysis is at household level.