In this paper, we document the economic implications of changing demographic conditions in Africa. To construct support ratios, we use National Transfer Accounts (NTA) estimates of per capita labor income and consumption by age, as well as population estimates and projections provided by the UN Population Division for 16 African countries. First, we find that, on average, support ratios are rising in Africa. But compared with the support ratios in Asia and Latin America, the magnitude of those in Africa is lower because the percentage of effective workers in the total population is also low. Second, we find that human capital spending is high in countries with low fertility rates, which suggests a quantity–quality trade-off. NTA estimates also show that to capitalize on the demographic dividend, countries have to create economic opportunities for young adults. In addition, investment in human and physical capital is important to generate the second demographic dividend.

The labor income share in national income is a good indicator of the extent to which the working classes are able to reap the fruits of economic growth or, conversely, bear the burden of economic stagnation. This paper aims to reconstruct the labor income share of Argentina, Brazil and Mexico in a three-sector framework, including the rural, the urban formal and the urban informal sectors. We find that in all three countries the share of labor earnings peaked in the middle of the 20th century. Fluctuations in the Brazilian and Mexican labor income shares were large, with a sharp decline in the post-1961 and post-1976 periods, respectively. In Argentina, the labor income shares tended to be more constant at levels around 50 per cent, testifying to a more stable and egalitarian distribution of income.