Economic Stimulus from Public Health Programs: Externalities from Mass AIDS Treatment Provision in South Africa

dc.contributor.authorMcLaren, Zoe
dc.contributor.authorBor, Jacob
dc.contributor.authorTanser, Frank
dc.contributor.authorBarnighausen, Till
dc.date.accessioned2021-12-03T16:20:26Z
dc.date.available2021-12-03T16:20:26Z
dc.date.issued2019-09
dc.description.abstractReturn on investment in international development assistance has attracted greater focus in recent years. Government programs, particularly public health programs, are likely to indirectly affect community members beyond the intended direct beneficiaries via externalities that could be many times larger than the direct benefits. This study evaluates the direct and indirect impact of the provision of mass AIDS treatment on labor market outcomes, using biomarker data to separately identify the impact by HIV status. We used rich data from a demographic surveillance site in rural South Africa with a 99% survey response rate. We leveraged differences in access to antiretroviral therapy (ART) that are uncorrelated with unobservables, and we used a set of rigorous causal inference methods, including machine learning (lasso), to estimate a plausibly causal impact. As ART access scaled up between 2004 and 2011, employment increased by 8.5 percentage points for HIV-infected individuals who were within 2 km from the nearest ART clinic compared to those more than 5 km away. We found sizable increases of 6.3 percentage points (22%) among HIV-uninfected individuals who had no HIV-infected household members. Labor force participation decreased over this period, which suggests that labor demand plays an important role in driving the observed employment increases. Our results demonstrate that the economic benefits of ART are broadly distributed, operate via channels outside the household, and have properties of a public good. Investments in health-related human capital may have important stimulus effects on local economies that should be considered alongside conventional economic policy.en_US
dc.description.sponsorshipBor acknowledges support from National Institutes of Health 1K01MH105320 and 1R01HD084233. Frank Tanser was supported by National Institute of Health grants R01HD084233 and R01AI124389. B¨arnighausen was supported by the Alexander von Humboldt Foundation through the Alexander von Humboldt Professor award, funded by the German Federal Ministry of Education and Research; the European Union; the Wellcome Trust; and from NICHD of NIH (R01-HD084233), NIA of NIH (P01-AG041710), NIAID of NIH (R01- AI124389 and R01-AI112339) as well as FIC of NIH (D43-TW009775). Funding for the Africa Centre for Health and Population Studies’ longitudinal population surveillance was received from the Wellcome Trust.en_US
dc.description.urihttp://zoemclaren.com/mclaren_economicstimulus.pdfen_US
dc.format.extent69 pagesen_US
dc.genreresearch papersen_US
dc.identifierdoi:10.13016/m2mull-tmr1
dc.identifier.citationMcLaren, Zoe et al.; Economic Stimulus from Public Health Programs: Externalities from Mass AIDS Treatment Provision in South Africa; Regents of the University of Michigan, September, 2019; http://www-personal.umich.edu/~zmclaren/mclaren_economicstimulus.pdfen_US
dc.identifier.urihttp://hdl.handle.net/11603/23512
dc.language.isoen_USen_US
dc.publisherRegents of the University of Michiganen_US
dc.relation.isAvailableAtThe University of Maryland, Baltimore County (UMBC)
dc.relation.ispartofUMBC School of Public Policy Collection
dc.relation.ispartofUMBC Faculty Collection
dc.rightsThis item is likely protected under Title 17 of the U.S. Copyright Law. Unless on a Creative Commons license, for uses protected by Copyright Law, contact the copyright holder or the author.en_US
dc.titleEconomic Stimulus from Public Health Programs: Externalities from Mass AIDS Treatment Provision in South Africaen_US
dc.typeTexten_US
dcterms.creatorhttps://orcid.org/0000-0003-2515-9731en_US

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