The joint effect of human capital and income inequalities on HIV/AIDS prevalence: An exploratory investigation

Annim, Samuel Kobina and Dasmani, Isaac (2010): The joint effect of human capital and income inequalities on HIV/AIDS prevalence: An exploratory investigation.

Abstract

The evidence of higher income inequality leading to increased HIV prevalence through channels of coercion and migration has emerged. This coupled with previously established macroeconomic impact of HIV/AIDS connotes reverse causality that is likely to develop a cyclical effect. The plausible cyclicality can be identified through the mergence of a three stage relationship. Initially from income inequality to HIV prevalence; then from HIV prevalence to reduced human capital formation and subsequently generating human capital inequality via reduced investment in human capital of affected households and back to income inequality. We hypothesize that the effect of this plausible cyclicality is likely to increase the effect of income inequality on HIV prevalence. Our aim is to assess the effect of productivity gaps measured by human capital dispersion on the relationship between income inequality and HIV prevalence. Deriving 1999 dataset on human capital dispersion which is measured by years of schooling, quality of school system and rates of return for 99 countries, we estimate its linear dependence effect with income inequality on HIV prevalence. We find a more significant and increased effect of income inequality on HIV prevalence of more than three times. This study sets the platform for using current datasets and generates a policy discussion for addressing productivity gaps as one of HIV/AIDS interventions.

• Item Type: MPRA Paper
• Language: English
• Keywords: HIV/AIDS Prevalence; Human Capital; Inequality; Income ; Education
• Subjects: I - Health, Education, and Welfare > I1 - Health > I12 - Health Behavior; I - Health, Education, and Welfare > I1 - Health > I10 - General

References

Aiken , L. S., & West, S. G. (1990). Multiple Regression: Testing and interpreting interactions. Newbury Park, CA: Sage Publications.

Becker, Gary S., (1962). “Investment in Human Capital: A Theoretical Analysis,” Journal of Political Economy LXX: 9 - 49.

Birdsall, N. and J. L. Londoño (1997): `Asset Inequality Matters: An Assessment of the World Bank's Approach to Poverty Reduction American Economic Review, vol. 87, no. 2, pp. 32-7.

Bonnel, R., (2001). Does it Increase or Decrease Growth in Africa? AIDS Campaign Team. World Bank, Washington, D.C.

Castelló, A. and R. Doménech (2002): “Human Capital Inequality and Economic Growth: Some New Evidence”. Economic Journal, 112 (478), 187-200.

De Gregorio, J., and Lee J., (2002). Education and Income Inequality: New Evidence from Cross Country Data. Review of Income and Wealth. Series 48(3).

Deuchert, E. and Brody A.S., (2007). Lack of Autodisable Syringe Use and Health Care Indicators Are Associated With High HIV Prevalence: An International Ecologic Analysis. Annals of Epidemiology, 17, pp. 199-207.

Drain P.K, Smith J. S, Hughes J. P, Halperin D. T, Holmes K. K., (2004). Correltes of National HIV Seroprevalence. An Ecologic Analysis of 122 Developing Countries. J Acquir Immune Defic Syndr April 1, 35,4.

Galor, O. and D. Tsiddon (1997): `The Distribution of Human Capital and Economic Growth.’ Journal of Economic Growth, vol. 2, no. 1, pp. 93-124.

Glomm, G. and B. Ravikumar (1992): `Public versus Private Investment in Human Capital: Endogenous Growth and Income Inequality.’ Journal of Political Economy, vol. 100, no. 4, pp. 818-34.

Greener, R., Jefferis, K. and Siphambe, H., (2000). The Impact of HIV/AIDS on Poverty and Inequality in Botswana. South African Journal of Economics Vol. 68(5), pp. 393-404.

Jaccard, J. & Turrisi, R., (2003). Interaction Effects in Multiple Regression. (2nd ed). Sage University Papers Series on Quantitative Applications in the Social Sciences, 07-072. Thousand Oaks, CA: Sage.

Haacker, M., (2002). Modeling the Macroeconomic Impact of HIV/AIDS, IMF Working Paper, WP/02/195.

Lim, A. S. K., and Tang, K. K., (2008). Human Capital Inequality and the Kuznets Curve. The Developing Economies, XLVI-1: pp. 26-51.

López, R., V. Thomas and Y. Wang (1998): `Addressing the Education Puzzle. The Distribution of Education and Economic Reforms.’ World Bank Working Papers 2031.

Mahal, A., (2001). The Human Development Roots of HIV and Implications for Policy: A Cross Country Analysis. Journal of Health & Population in Developing Countries; 4(1): 43-60.

Mincer, J., (1974). Schooling, Experience and Earning. New York, NBER.

Morrisson, C. and Murtin, F., (2007). Education Inequalities and the Kuznets curves: A Global Perspective since 1870. Paris School of Economics Working Paper No. 2007-12.

Over, M., (1998). The Effect of Societal Variables on Urban Rates of HIV infection in developing countries: An Exploratory Analysis., in Ainsworth M, Fransen L and Over M. (eds), Confronting AIDS: Evidence from the Developing World, European Communities, Luxembourg, 1998, pp. 39-51.

Psacharopoulos, G and Patrinous, H. A., (2004). Returns to Investment in Education: A Further Update, Education Economics 12, (2). pp. 111-134.

Saint-Paul, G. and T. Verdier (1993): `Education, Democracy and Growth.’ Journal of Developmen Economics, vol. 42, no. 2, pp. 399-407.

Sawers, L., Stillwaggon, E. and Hertz, T. (2008). Cofactor infections and HIV epidemics in developing countries: implications for treatment ; Washington DC, USA; Department of Economics, Gettysburg College, Gettysburg PA, USA Vol. 20, No. 4, April 2008, 488 – 494

Theodore, K., (2001). HIV-AIDS in the Caribbean: Economic Issues-Impact and Investment Response. CMH, Working Paper Series, Paper N0. WGI:1, WHO, Geneva.

Tsafack, C. & Bassolé, L., (2006). Income Inequality and HIV/AIDS epidemic in sub-Saharan Africa. Working Paper, CERDI-CNRS, Université d’ Auvergne, France.

United Nations Development Programme, (2009). The Millennium Development Goals Report, New York.

UNAIDS, (2008). Report on the global AIDS epidemic, Joint United Nations Programme on HIV/AIDS (UNAIDS), Geneva.