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The joint effect of human capital and income inequalities on HIV/AIDS prevalence: An exploratory investigation

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  • Annim, Samuel Kobina
  • Dasmani, Isaac

Abstract

The evidence of higher income inequality leading to increased HIV prevalence through channels of coercion and migration has emerged. This coupled with previously established macroeconomic impact of HIV/AIDS connotes reverse causality that is likely to develop a cyclical effect. The plausible cyclicality can be identified through the mergence of a three stage relationship. Initially from income inequality to HIV prevalence; then from HIV prevalence to reduced human capital formation and subsequently generating human capital inequality via reduced investment in human capital of affected households and back to income inequality. We hypothesize that the effect of this plausible cyclicality is likely to increase the effect of income inequality on HIV prevalence. Our aim is to assess the effect of productivity gaps measured by human capital dispersion on the relationship between income inequality and HIV prevalence. Deriving 1999 dataset on human capital dispersion which is measured by years of schooling, quality of school system and rates of return for 99 countries, we estimate its linear dependence effect with income inequality on HIV prevalence. We find a more significant and increased effect of income inequality on HIV prevalence of more than three times. This study sets the platform for using current datasets and generates a policy discussion for addressing productivity gaps as one of HIV/AIDS interventions.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21251.

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Date of creation: Feb 2010
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Handle: RePEc:pra:mprapa:21251

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Keywords: HIV/AIDS Prevalence; Human Capital; Inequality; Income ; Education;

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  1. Saint-Paul, G. & Verdier, T., 1991. "Education, Democracy and growth," DELTA Working Papers, DELTA (Ecole normale supérieure) 91-27, DELTA (Ecole normale supérieure).
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  3. Galor, Oded & Tsiddon, Daniel, 1997. " The Distribution of Human Capital and Economic Growth," Journal of Economic Growth, Springer, Springer, vol. 2(1), pages 93-124, March.
  4. Audrey Siew Kim LIM & Kam Ki TANG, 2008. "Human Capital Inequality And The Kuznets Curve," The Developing Economies, Institute of Developing Economies, vol. 46(1), pages 26-51.
  5. De Gregorio, Jose & Lee, Jong-Wha, 2002. "Education and Income Inequality: New Evidence from Cross-Country Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 395-416, September.
  6. Markus Haacker, 2002. "Modeling the Macroeconomic Impact of HIV/AIDS," IMF Working Papers 02/195, International Monetary Fund.
  7. R Greener & K Jefferis & H Siphambe, 2000. "The Impact of HIV/AIDS on Poverty and Inequality in Botswana," South African Journal of Economics, Economic Society of South Africa, Economic Society of South Africa, vol. 68(5), pages 393-404, December.
  8. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 12(2), pages 111-134.
  9. Christian Morrisson & Fabrice Murtin, 2007. "Education inequalities and the Kuznets curves: a global perspective since 1870," PSE Working Papers halshs-00588085, HAL.
  10. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 70, pages 9.
  11. Amparo Castello & Rafael Domenech, 2002. "Human Capital Inequality and Economic Growth: Some New Evidence," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(478), pages C187-C200, March.
  12. Birdsall, Nancy & Londono, Juan Luis, 1997. "Asset Inequality Matters: An Assessment of the World Bank's Approach to Poverty Reduction," American Economic Review, American Economic Association, American Economic Association, vol. 87(2), pages 32-37, May.
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