HIV/AIDS and Labour Productivity in Kenyan Manufacturing

Abstract

The article investigates labour productivity effects of workers’ concerns about HIV/AIDS on firm revenues and wages. Using cross-sectional data from Kenyan manufacturing firms, the article demonstrates that firm expenditures on medical care improve the mental health of workers, as proxied by concerns about HIV/AIDS, and in turn, a reduction in concerns is associated with increased labour productivity. Policy implications of the study findings are highlighted.

Keywords: health concerns; HIV/AIDS; labour productivity, firm performance
JEL Classification: I10, J24, L25.