HIV Status and Labor Market Participation in South Africa

Abstract

We use econometric methods based on the propensity score to estimate the causal effect of HIV status on employment outcomes in South Africa. Relying on rich data from a national survey, which included HIV testing, we control for systematic differences between HIV-positive and HIV-negative individuals. We provide the first nationally representative estimates of the impact of HIV status on employment outcomes for southern Africa. Being HIV positive is associated with an increase of 6 to 7 percentage points in the likelihood of unemployment overall and 10 to 11 percentage points for those who are less educated. This disadvantage reinforces existing inequalities in South Africa.

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