Health and labor supply in the context of HIV/AIDS: the long-run economic impacts on antiretroviral therapy()

Abstract

Using longitudinal survey data collected in Kenya, this paper estimates the longer-term impacts of antiretroviral therapy (ART) on the labor supply of treated adults and their household members. Building upon previous work in Kenya, data collected from 2004-2006 indicate that early evidence on the short-run impacts of ART tends to be upheld over the long-term as well. The results show that the labor supply response among treated adults occurs rapidly and is sustained through the 3-year observation period in our study. These results underscore the strong relationship between health and labor supply that has been observed in other contexts.

Figure 1

Impact of ART on probability of being economically active Notes: Figure displays coefficients from an individual fixed effects regression that indicates average estimated changes in the probability of being economically active, relative to the first quarter of ART initiation (represented by 0 quarters). The regression includes individual fixed effects, round 2 and 3 indicators, and month-of-interview indicator variables. Dotted lines represent the 95 percent confidence intervals.

Figure 2

Impact of ART on weekly hours worked Notes: Figure displays coefficients from an individual fixed effects regression that indicates average estimated changes in the number of hours worked in the past week (including 0 hours for those not working), relative to the first quarter of ART initiation (represented by 0 quarters). The regression includes individual fixed effects, round 2 and 3 indicators, and month-of-interview indicator variables. Dotted lines represent the 95 percent confidence intervals.

Figure 3

Impact of ART on body weight Notes: Figure displays coefficients from an individual fixed effects regression that indicates average estimated changes in the body weight of patients, relative to the first quarter of ART initiation (represented by 0 quarters). Dotted lines represent the 95 percent confidence intervals.