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HIV/AIDS; The Impacton Poverty and Inequality

  • Markus Haacker
  • Gonzalo Salinas

Using available data on the distribution of HIV/AIDS prevalence across population groups for four sub-Saharan African countries and transposing this information to household income and expenditure surveys, we simulate the impact of HIV/AIDS on poverty and inequality. We find that the epidemic lowers average income and increases poverty, and that the jump in poverty is larger than expected from the fall in average income. This disproportionate increase in poverty reflects the large share of the population living on the threshold of poverty and the higher HIV prevalence rates in those segments of the population.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/126.

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Length: 24
Date of creation: 01 May 2006
Date of revision:
Handle: RePEc:imf:imfwpa:06/126
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  1. 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, vol. 68(5), pages 393-404, December.
  2. 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.
  3. Aart Kraay, 2004. "When is Growth Pro-Poor? Cross-Country Evidence," IMF Working Papers 04/47, International Monetary Fund.
  4. Markus Haacker, 2002. "The Economic Consequences of HIV/AIDS in Southern Africa," IMF Working Papers 02/38, International Monetary Fund.
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