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The Impact of HIV/Aids on Human Capital Investment in Sub-Saharan Africa: New Evidence

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Listed:
  • Chicoine, Luke

    (Amazon)

  • Lyons, Emily

    (Bates College)

  • Sahue, Alexia

    (Bates College)

Abstract

The risk of AIDS-related mortality increased dramatically throughout the 1990s. This paper updates previous work by Fortson (2011) to examine the impact of mortality risk on human capital investment during the deadliest period of the pandemic. We combine Demographic Health Survey data from 30 countries, across 60 survey waves, to generate a sample of over 1,300,000 observations. Cohort-specific analysis using the updated sample yields new evidence that the negative relationship between HIV prevalence and schooling steepened as mortality risk increased. The reduction in schooling is largest for women, and along the extensive margin of the schooling decision. The findings indicate that the decline in human capital investment associated with the HIV/AIDS pandemic prior to the availability of treatment was larger in magnitude than previously understood, but may be reversing rapidly as access to treatment is expanded.

Suggested Citation

  • Chicoine, Luke & Lyons, Emily & Sahue, Alexia, 2020. "The Impact of HIV/Aids on Human Capital Investment in Sub-Saharan Africa: New Evidence," IZA Discussion Papers 13609, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13609
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    References listed on IDEAS

    as
    1. Jane G Fortson, 2011. "Mortality Risk and Human Capital Investment: The Impact of HIV/AIDS in Sub-Saharan Africa," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 1-15, February.
    2. Victoria Baranov & Hans-Peter Kohler, 2018. "The Impact of AIDS Treatment on Savings and Human Capital Investment in Malawi," American Economic Journal: Applied Economics, American Economic Association, vol. 10(1), pages 266-306, January.
    3. Baranov, Victoria & Bennett, Daniel & Kohler, Hans-Peter, 2015. "The indirect impact of antiretroviral therapy: Mortality risk, mental health, and HIV-negative labor supply," Journal of Health Economics, Elsevier, vol. 44(C), pages 195-211.
    4. David Evans & Edward Miguel, 2007. "Orphans and schooling in africa: a longitudinal analysis," Demography, Springer;Population Association of America (PAA), vol. 44(1), pages 35-57, February.
    5. James Levinsohn & Zoë M. McLaren & Olive Shisana & Khangelani Zuma, 2013. "HIV Status and Labor Market Participation in South Africa," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 98-108, March.
    6. Susan Godlonton & Rebecca L. Thornton, 2013. "Learning from Others' HIV Testing: Updating Beliefs and Responding to Risk," American Economic Review, American Economic Association, vol. 103(3), pages 439-444, May.
    7. Chicoine, Luke, 2012. "AIDS mortality and its effect on the labor market: Evidence from South Africa," Journal of Development Economics, Elsevier, vol. 98(2), pages 256-269.
    8. Friedman, Willa Helterline, 2018. "Antiretroviral drug access and behavior change," Journal of Development Economics, Elsevier, vol. 135(C), pages 392-411.
    9. repec:mpr:mprres:6928 is not listed on IDEAS
    10. Marshall Burke & Erick Gong & Kelly Jones, 2015. "Income Shocks and HIV in Africa," Economic Journal, Royal Economic Society, vol. 125(585), pages 1157-1189, June.
    11. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    12. Harsha Thirumurthy & Joshua Graff Zivin, 2012. "Health and Labor Supply in the Context of HIV/AIDS: The Long-Run Economic Impacts of Antiretroviral Therapy," Economic Development and Cultural Change, University of Chicago Press, vol. 61(1), pages 73-96.
    13. Adrienne M. Lucas & Nicholas L. Wilson, 2013. "Adult Antiretroviral Therapy and Child Health: Evidence from Scale-Up in Zambia," American Economic Review, American Economic Association, vol. 103(3), pages 456-461, May.
    14. Tompsett, Anna, 2020. "The Lazarus drug: the impact of antiretroviral therapy on economic growth," Journal of Development Economics, Elsevier, vol. 143(C).
    15. Lucas, Adrienne M. & Chidothe, Margaret & Wilson, Nicholas L., 2019. "Effects of adult health interventions at scale on children’s schooling: Evidence from antiretroviral therapy in Zambia," Economics of Education Review, Elsevier, vol. 72(C), pages 107-120.
    16. Jane Fortson, 2008. "The gradient in sub-saharan Africa: Socioeconomic status and HIV/AIDS," Demography, Springer;Population Association of America (PAA), vol. 45(2), pages 303-322, May.
    17. Seema Jayachandran & Adriana Lleras-Muney, 2009. "Life Expectancy and Human Capital Investments: Evidence from Maternal Mortality Declines," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(1), pages 349-397.
    18. Haacker, Markus, 2016. "The Economics of the Global Response to HIV/AIDS," OUP Catalogue, Oxford University Press, number 9780198718048.
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    More about this item

    Keywords

    schooling; mortality risk; HIV/AIDS;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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    1. The impact of HIV/AIDS on human capital investment in Sub-Saharan Africa: New evidence (Journal of Applied Econometrics forthcoming) in ReplicationWiki

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