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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.
This document outlines the impact of the HIV/AIDS epidemic that has plunged millions of children into orphanhood and poverty. It also discusses how families and communities are coping and puts forward structures for responding to the crisis.