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The Economic Impact of AIDS Treatment: Labor Supply in Western Kenya

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  • Harsha Thirumurthy
  • Joshua Graff Zivin
  • Markus Goldstein

Abstract

Using longitudinal survey data collected in collaboration with a treatment program, this paper estimates the economic impacts of antiretroviral treatment. The responses in two outcomes are studied: (1) labor supply of treated adult AIDS patients; and (2) labor supply of individuals in patients’ households. Within six months after treatment initiation, there is a 20 percent increase in the likelihood of the patient participating in the labor force and a 35 percent increase in weekly hours worked. Young boys in treated patients’ households work significantly less after treatment initiation, while girls and adult household members do not change their labor supply.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 43 (2008)
Issue (Month): 3 ()
Pages: 511-552

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Handle: RePEc:uwp:jhriss:v:43:y:2008:i:3:p:511-552

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Web page: http://jhr.uwpress.org/

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  1. Yamano, Takashi & Jayne, T. S., 2004. "Measuring the Impacts of Working-Age Adult Mortality on Small-Scale Farm Households in Kenya," World Development, Elsevier, vol. 32(1), pages 91-119, January.
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  3. Beegle, Kathleen, 2005. "Labor Effects of Adult Mortality in Tanzanian Households," Economic Development and Cultural Change, University of Chicago Press, vol. 53(3), pages 655-83, April.
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  5. Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 311-35, July.
  6. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, issue Nov, pages 2-20.
  7. Clive Bell & Shantayanan Devarajan & Hans Gersbach, 2003. "The long-run economic costs of AIDS : theory and an application to South Africa," Policy Research Working Paper Series 3152, The World Bank.
  8. Orley Ashenfelter & David Card, 1984. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," Working Papers 554, Princeton University, Department of Economics, Industrial Relations Section..
  9. Ashenfelter, Orley & Heckman, James J, 1974. "The Estimation of Income and Substitution Effects in a Model of Family Labor Supply," Econometrica, Econometric Society, vol. 42(1), pages 73-85, January.
  10. Pitt, Mark M & Rosenzweig, Mark R, 1990. "Estimating the Intrahousehold Incidence of Illness: Child Health and Gender-Inequality in the Allocation of Time," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(4), pages 969-80, November.
  11. Michael Kremer, 2002. "Pharmaceuticals and the Developing World," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 67-90, Fall.
  12. Kochar, Anjini, 1995. "Explaining Household Vulnerability to Idiosyncratic Income Shocks," American Economic Review, American Economic Association, vol. 85(2), pages 159-64, May.
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Cited by:
  1. Jack, William & Lewis, Maureen, 2009. "Health investments and economic growth : macroeconomic evidence and microeconomic foundations," Policy Research Working Paper Series 4877, The World Bank.
  2. World Bank, 2007. "Healthy Development : The World Bank Strategy for Health, Nutrition, and Population Results," World Bank Publications, The World Bank, number 6843.
  3. Gill, T.B., 2010. "Modeling the impact of HIV/AIDS upon food security of diverse rural households in Western Kenya," Agricultural Systems, Elsevier, vol. 103(5), pages 265-281, June.
  4. Dalton Conley & Gordon C. McCord & Jeffrey D. Sachs, 2007. "Africa's Lagging Demographic Transition: Evidence from Exogenous Impacts of Malaria Ecology and Agricultural Technology," NBER Working Papers 12892, National Bureau of Economic Research, Inc.
  5. Justine Burns & Malcolm Kewsell & Rebecca Thornton, 2009. "Evaluating the Impact of Health Programmes," SALDRU Working Papers 40, Southern Africa Labour and Development Research Unit, University of Cape Town.
  6. Adhvaryu, Achyuta & Nyshadham, Anant, 2011. "Healthcare Choices, Information and Health Outcomes," Working Papers 88, Yale University, Department of Economics.
  7. Sosa-Rubí, Sandra G. & Galárraga, Omar & Harris, Jeffrey E., 2009. "Heterogeneous impact of the "Seguro Popular" program on the utilization of obstetrical services in Mexico, 2001-2006: A multinomial probit model with a discrete endogenous variable," Journal of Health Economics, Elsevier, vol. 28(1), pages 20-34, January.
  8. Joshua S. Graff Zivin & Harsha Thirumurthy & Markus Goldstein, 2006. "AIDS Treatment and Intrahousehold Resource Allocations: Children's Nutrition and Schooling in Kenya," NBER Working Papers 12689, National Bureau of Economic Research, Inc.
  9. James A. Levinsohn & Zoë McLaren & Olive Shisana & Khangelani Zuma, 2011. "HIV Status and Labor Market Participation in South Africa," NBER Working Papers 16901, National Bureau of Economic Research, Inc.
  10. Bourguignon, Francois & Ferreira, Francisco H. G. & Walton, Michael, 2006. "Equity, Efficient and Inequality Traps: A Research Agenda," Working Paper Series rwp06-025, Harvard University, John F. Kennedy School of Government.
  11. David Canning, 2006. "The Economics of HIV/AIDS in Low-Income Countries: The Case for Prevention," PGDA Working Papers 1806, Program on the Global Demography of Aging.
  12. Elizabeth Asiedu & Yi Jin & Isaac Kalonda-Kanyama, 2012. "The Impact of HIV/AIDS on Foreign Direct Investment: Evidence from Sub-Saharan Africa," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 201207, University of Kansas, Department of Economics.
  13. Marinescu, Ioana E., 2012. "HIV, Wages, and the Skill Premium," IZA Discussion Papers 6438, Institute for the Study of Labor (IZA).
  14. Joshua Graff Zivin & Maria Damon & Harsha Thirumurthy, 2010. "Health Shocks and Natural Resource Management: Evidence from Western Kenya," NBER Working Papers 16594, National Bureau of Economic Research, Inc.
  15. Adhvaryu, Achyuta R. & Beegle, Kathleen, 2009. "The long-run impacts of adult deaths on older household members in Tanzania," Policy Research Working Paper Series 5037, The World Bank.
  16. Achyuta Adhvaryu & Anant Nyshadham, 2011. "Labor Supply, Schooling and the Returns to Healthcare in Tanzania," Working Papers 995, Economic Growth Center, Yale University.

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