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Across sub-Saharan Africa, the AIDS pandemic has impacted children in a myriad of ways, from parental loss, to HIV infection, to increased poverty and marginalization. These children have been labeled orphans and vulnerable children (OVC) in the international development literature, and a range of interventions have provided services aiming to mitigate the impact of the crisis on human development outcomes, including education. …
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.
