Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267448 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15711
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Health-maximizing and welfare-maximizing behaviors can be at odds, especially among disadvantaged groups, generating health disparities. We estimate a lifecycle model of medication and labor supply decisions using data on HIV-positive men. We evaluate an effective HIV treatment innovation that had harsh side effects: HAART. Measured in lifetime utility gains, HAART disproportionately benefitted higher-education men. Lower-education men were more likely to avoid the side effects of HAART that interfered with work. A counterfactual mandate to use HAART improves health but increases inequality because low-education individuals work less. A counterfactual non-labor income subsidy increases HAART adoption and improves health among lower-education individuals.
Subjects: 
health disparities
health behaviors
dynamic demand
side effects
structural models
HIV/AIDS
JEL: 
I12
I14
I20
J2
O31
Document Type: 
Working Paper

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