Finds that higher HIV prevalence reduces human capital investment in sub-Saharan Africa, impacting economic growth.
Over the past several decades, the HIV/AIDS epidemic has dramatically altered patterns of morbidity and mortality in sub-Saharan Africa, with potential consequences for human capital investment and economic growth. Using data from Demographic and Health Surveys for fifteen countries in sub-Saharan Africa, I estimate the relationship between regional HIV prevalence and the change in individual human capital investment over time. Consistent with a simple model of human capital investment incorporating mortality risk, I find that areas with higher levels of HIV experienced relatively larger declines in schooling.
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Jane Fortson (2010) studied this question.
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