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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.
