Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58825
Authors: 
Marinescu, Ioana E.
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6438
Abstract: 
The HIV epidemic has dramatically decreased labor supply among prime-age adults in sub-Saharan Africa. Using within-country variation in regional HIV prevalence and a synthetic panel, I find that HIV significantly increases the capital-labor ratio in urban manufacturing firms. The impact of HIV on average wages is positive but imprecisely estimated. In contrast, HIV has a large positive impact on the skill premium. The impact of HIV on the wages of low skilled workers is insignificantly different from 0, and is strongly dampened by competition from rural migrants. The HIV epidemic disproportionately increases the incomes of high-skilled survivors, thus increasing inequality.
Subjects: 
labor supply
wages
health
AIDS
HIV
development
JEL: 
J22
I15
J31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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