The Economic Impact of Aids Treatment: Labor Supply in Western Kenya

49 Pages Posted: 15 Nov 2006

See all articles by Harsha Thirumurthy

Harsha Thirumurthy

University of Pennsylvania; Center for Health Incentives and Behavioral Economics, University of Pennsylvania; University of Pennsylvania - Population Studies Center

Joshua Graff Zivin

Columbia University - Department of Health Policy and Management; National Bureau of Economic Research (NBER)

Markus Goldstein

World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: November 2006

Abstract

Using longitudinal survey data from western Kenya, this paper estimates the economic impacts of antiretroviral treatment. The responses in two important outcomes are studied: (1) labor supply of adult AIDS patients receiving treatment; and (2) labor supply of patients' household members. We find that within six months after treatment initiation, there is a 20 percent increase in patients' likelihood of participating in the labor force and a 35 percent increase in weekly hours worked. Since patient health would continue to decline without treatment, these labor supply responses are underestimates of the impact of treatment on the treated. The upper bound of the treatment impact, based on plausible assumptions about the counterfactual, is considerably larger. The responses in household members' labor supply are heterogeneous, with young boys and women working significantly less after initiation of treatment. The effects on child labor are important since they suggest potential schooling impacts from treatment.

Keywords: HIV/AIDS, Antiretroviral Treatment, Labor Supply, Child Labor

JEL Classification: I1, I3, O1, J2

Suggested Citation

Thirumurthy, Harsha and Zivin, Joshua Graff and Goldstein, Markus P., The Economic Impact of Aids Treatment: Labor Supply in Western Kenya (November 2006). Yale University Economic Growth Center Discussion Paper No. 947, Available at SSRN: https://ssrn.com/abstract=944491

Harsha Thirumurthy (Contact Author)

University of Pennsylvania ( email )

423 Guardian Dr
Philadelphia, PA 19104
United States

Center for Health Incentives and Behavioral Economics, University of Pennsylvania ( email )

Philadelphia, PA 19104
United States

University of Pennsylvania - Population Studies Center ( email )

PA
United States

Joshua Graff Zivin

Columbia University - Department of Health Policy and Management ( email )

600 West 168th Street, 6th Floor
New York, NY 10032
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Markus P. Goldstein

World Bank ( email )

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Washington, DC 20433
United States

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