Kiel Working Papers, Kiel Institute for World Economics
No 1530:
Does AIDS-Related Mortality Reduce Per-Capita Household Income? Evidence from Rural Zambia
Toman Omar Mahmoud and Rainer Thiele
Abstract: This paper evaluates the effect of AIDS-related mortality
on per-capita incomes of surviving household members, using a large
nationally representative sample of rural households from Zambia. To
minimize selection bias that may arise because AIDS is likely to be the
endogenous outcome of individual behavior, we employ a
difference-in-difference propensity score matching estimator. We find that
the death of a prime-age member has no significant impact on per-capita
household income. This result continues to hold when we control for
spillover effects by excluding households from the control group if members
departed or joined for reasons related to AIDS. A likely explanation for
this finding is that surviving household members pursue a mix of income and
demographic coping strategies that prevents income losses in the short to
medium run
Keywords: HIV/AIDS, prime-age mortality, per adult equivalent income, difference-in-difference, propensity score matching, spillovers, Zambia; (follow links to similar papers)
JEL-Codes: I31,; J19,; C14,; C23; (follow links to similar papers)
23 pages, July 2009
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