Publication Title: The Review of Economics and Statistics

Abstract: We use econometric methods based on the propensity score to estimate the causal effect of HIV status on employment outcomes in South Africa. Relying on rich data from a national survey, which included HIV testing, we control for systematic differences between HIV-positive and HIV-negative individuals. We provide the first nationally representative estimates of the impact of HIV status on employment outcomes for southern Africa. Being HIV positive is associated with an increase of 6 to 7 percentage points in the likelihood of unemployment overall and 10 to 11 percentage points for those who are less educated. This disadvantage reinforces existing inequalities in South Africa.