Hiv/Aids: The Impact on Poverty and Inequality

24 Pages Posted: 21 Jun 2006

See all articles by Gonzalo Salinas

Gonzalo Salinas

International Monetary Fund (IMF)

Markus Haacker

International Monetary Fund (IMF) - Research Department

Date Written: May 2006

Abstract

Using available data on the distribution of HIV/AIDS prevalence across population groups for four sub-Saharan African countries and transposing this information to household income and expenditure surveys, we simulate the impact of HIV/AIDS on poverty and inequality. We find that the epidemic lowers average income and increases poverty, and that the jump in poverty is larger than expected from the fall in average income. This disproportionate increase in poverty reflects the large share of the population living on the threshold of poverty and the higher HIV prevalence rates in those segments of the population.

Keywords: Income distribution, poverty, growth, income per capita, health, HIV/AIDS, social security, Ghana, Kenya, Swaziland, Zambia, sub-Saharan Africa

JEL Classification: H55, I18, I32, I38, J11, O15, O55

Suggested Citation

Salinas, Gonzalo E. and Haacker, Markus, Hiv/Aids: The Impact on Poverty and Inequality (May 2006). IMF Working Paper, Vol. , pp. 1-24, 2006. Available at SSRN: https://ssrn.com/abstract=910691

Gonzalo E. Salinas

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Markus Haacker (Contact Author)

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-4089 (Phone)
202-589-4089 (Fax)

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