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The Indirect Impact of Antiretroviral Therapy: Mortality Risk, Mental Health, and HIV-Negative Labor Supply

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  • Victoria Baranov

    (Department of Economics, University of Melbourne)

  • Daniel Bennett

    (University of Chicago)

  • Hans-Peter Kohler

    (University of Pennsylvania)

Abstract

To reduce the burden of the HIV/AIDS epidemic, international donors recently began providing free antiretroviral therapy (ART) in parts of Sub-Saharan Africa. ART dramatically prolongs life and reduces infectiousness for people with HIV. This paper shows that ART availability increases work time for HIV-negative people without caretaker obligations, who do not directly bene t from the medicine. A difference-in-difference design compares people living near and far from ART, before and after treatment becomes available. We explore the possible reasons for this pattern and find that ART availability substantially reduces subjective mortality risk and improves mental health. These results show an undocumented economic consequence of the HIV/AIDS epidemic and an important externality of medical innovation. They also provide the first evidence of a link between the disease environment and mental health.

Suggested Citation

  • Victoria Baranov & Daniel Bennett & Hans-Peter Kohler, 2015. "The Indirect Impact of Antiretroviral Therapy: Mortality Risk, Mental Health, and HIV-Negative Labor Supply," Department of Economics - Working Papers Series 2002, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:2002
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    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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