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Florida State University 
Department of Urban and Regional Planning
Planning Methods III: Forecasting 





Topic
Summary
Age Cohorts
Components
of Change
Example
Key Concepts
Lessons to
be Learned
Discussion
Questions
References
Links
 

COHORT-COMPONENT TECHNIQUE

Topic Summary

"Perhaps no single factor is more important for local government planning than the size and composition of a region's population and the way it will change in the future. Even though the total population may remain constant, changes in its composition can fundamentally alter the need for public facilities and services." (Klosterman, p. 51, emphasis added)
In the previous section, extrapolation techniques were utilized to project total population figures for a period of years into the future. These figures provide an area with a general idea of what the future likely holds for that region. These single figures give an idea as to expected impacts on infrastructure, programs, and other government related services.
However, a great deal of important information is not provided by these extrapolation techniques. Specifically, a single, aggregated population figure can provide no insight into the age and gender breakdown of the projected population. Will the local populace have more elderly persons? More children? More young persons who are likely to have more children? The composition of the local population, particularly the age breakdown, is immensely important to local planning efforts. More children usually mean a need for more schools and other related services. A larger elderly population points to a different set of service needs. A growing young adult population also has tremendous impacts as these age groups drive more, have children, and generally consume certain services at a greater rate than other age groups.
Clearly, then, to obtain more precise and more detailed information about a current and future population, the inclusion of age in our projection techniques is a necessary addition. In addition, these more advanced techniques also usually include gender in the equation because males and females experience different mortality rates and only one of these two groups, females is "at risk" to have children.
The demand for more informative and more in-depth projections has led to the development of the cohort-component projection technique; a technique that incorporates information about age/gender cohorts and the different ways a local population can change in the projection of future populations.

Population Cohorts

As spelled out above, the distribution of the local population by age is very important to local planning efforts. The incorporation of age in the model is achieved through the division of a population into age cohorts. This technique divides the local population into five year age cohorts, usually by gender as well. For example, Washington State's 1990 population by five year age cohorts would be the following:
Washington State Population, 1990
 
Age Cohort
Females
Males
1-4
182,642
191,715
5-9
180,763
189,877
10-14
163,708
173,093
15-19
157,448
166,401
20-24
170,701
181,829
25-29
203,072
209,385
30-34
220,717
222,345
35-39
213,188
213,478
40-44
186,478
187,771
45-49
140,033
143,292
50-54
107,298
109,083
55-59
96,912
94,683
60-64
99,065
90,311
65-69
100,216
85,773
70-74
81,815
66,826
75-79
65,207
46,396
80-84
44,122
25,622
85+
39,560
15,867
Total
2,452,945
2,413,747
The local population is broken into these cohorts because these age groups experience mortality at different rates (being high in the first year of life and high at the older ages). Also, the sexes experience mortality at different rates as well, with males generally having higher mortality rates throughout life. The local population is often broken down by race as well (for example the above age/gender distributions for whites, blacks, and Asians) because minority groups generally have higher mortality rates than whites.
These age/gender (and occasionally race) cohorts are usually represented in a population pyramid, a graphical means of depicting these local population. For an example of the above data in a population pyramid, go here.

Components of Population Change

There are three (and only three) ways that a local population can change in size and composition. Each of these three components is built into the Cohort-Component Model. These are:
1. Births: The addition of people to a local population can occur most clearly through the birth of children. The way this is built into the model is important, because it illustrates another key concept in demographics. Only a certain portion of the population can give birth to children (despite all the advances of medical science). In demographic terms, this group of people is deemed "at risk" for birth. In demographics, females between the age of 10-49 are identified as the at risk group. The US Census Bureau provides race specific fertility rates for the age cohorts 10-14, 15-19, 20-24, 25-29, 30-34, 34-39, 40-44, 44-49. (See Klosterman Chapter 6, pp. 81-88)
2. Deaths: The removal of people from a local population through mortality. Unlike births, all persons are "at risk" for mortality. For this reason, mortality rates are calculated for all age/sex cohorts. Mortality rates are relatively high for the first year of life and generally decrease until the middle ages. Mortality rates are by far their highest for elderly age groups (ages 65 and up). However, the Cohort-Component model actually uses the corollary to mortality rates, called survival rates. Survival rates provide the likelihood that a person with a given set of attributes will survive a given period of time. (See Klosterman Chapter 5, pp. 65-80)
3. Migration: The last factor impacting local population size is migration. Migration can actually occur in two directions:
1) in-migration: movement into the local area by persons or families
2) out-migration: movement out of the local area by persons of families.
Unlike births and deaths, the migration component does not rely upon the calculation of a rate, like fertility and mortality/survival rates. Determining who is "at risk" for migration is very difficult, especially for in-migrants, so the migration component instead relies upon past levels of migration and then uses these past figures to project future migration levels. Any loss or increase in population in a past time period not accounted for by fertility and mortality rates is assumed to be the result of migration.
For example, if between 1980 and 1990 the number of births was 1,000 and the number of deaths was 800 and the total population changed by 400 persons, then those additional 200 persons would be assumed to be the result of in-migration. (See Klosterman Chapter 7, pp. 89-99)

Example of the Technique

UNDER CONSTRUCTION!!!

Key Concepts

  • The major additions to the model; age/gender cohorts and cohort-specific information for the components of population change births, deaths, and migration.
  • The presentation and interpretation of population pyramids.
  • The components of population change: Births, Deaths, Migration.
  • The calculation and use of fertility and mortality/survival rates.
  • The non-use of rates when the migration component is addressed.

Lessons to be Learned

  • "The cohort-component technique is widely used because it provides detailed information on an area's future population, births, deaths, and migrants by age, sex, and race. This information is useful for many areas of planning and public administration." (Klosterman, p. 107)
  • The use of a more complex model to provide projections that are more specific than just a single summary figure. Planners regularly use models or techniques that balance the advantage of more information with the disadvantage of greater complexity.
  • The breakdown of very complex concepts into component parts. In this example we have broken down local population change into three simple pieces: births, deaths, and migration. Local population change is certainly affected by an infinite number of factors that are effectively excluded by this model. They are outside the model. Planners regularly do this with other topics: for example, transportation planners understand trips in terms of origins and destinations and economic developers understand the local economy in terms of basic and non-basic employment.

Discussion Questions

  • What advantages does the cohort-component technique offer to demographers?
  • What disadvantages are inherent to this technique?
  • What are the data requirements of the cohort-component technique? Where is this data to be found?
  • Are there any assumptions inherent to this technique? What are they/ Why might they be problematic?
  • How might an analyst generate multiple projections using this technique? What factors can be manipulated within this model?

References

Irwin, Richard. 1997. Guide for Local Area Population Projections. Bureau of the Census Technical Paper 39. Washington, D.C.: U.S. Government Printing Office.
Klosterman, Richard E. 1990. Community and Analysis Planning Techniques. Rowmand and Littlefield Publishers, Inc. Savage, Maryland. See chapter 4-8.
Klosterman, Richard E., Richard K. Brail, and Earl G. Bossard. 1993. Spreadsheet Models for Urban and Regional Analysis.
Pittenger, Donald. 1976. Projecting State and Local Populations. Cambridge, MA: Ballinger.
Pittenger, Donald. 1977. "Population Forecasting Standards: Some Considerations Concerning Their Necessity and Content." Demography 14: 363-368.
Pittenger, Donald. 1980. "Some Problems in Forecasting Populations for Government Planning Purposes." The American Statistician 34: 135-139.

Links

US Census Bureau
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