2007. 30 p.
University of Chicago. Becker Center of Chicago Price Theory
Background paper prepared for meeting of the World Bank/UNAIDS Economics Reference Group, 8 and 9 November 2007. http://www.heard.org.za/research-unaids
Using data from Demographic and Health Surveys for eleven countries in sub-Saharan Africa,the authorestimates the effect of local HIV prevalence on individual human capital investment. The authorfinds that the HIV/AIDS epidemic has reduced human capital investment: living in an area with higher HIV prevalence is associated with lower levels of completed schooling and slower progress through school. These results are consistent with a model of human capital investment in which parents and children respond to changes in the expected return to schooling driven by mortality risk.
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