The Impact of the AIDS Epidemic on African Firms

The effect on firms of the AIDS epidemic depends upon the strength of two factors. First, work force attrition resulting from illness or death due to HIV infection must be a large proportion of the total worker attrition in firms. Second, the higher rates of worker attrition should adversely effect firms’ costs and performance. Using primary survey data from five sub-Saharan African countries, covering 992 firms with total employment of 115,136 workers, this study finds both effects to be minor.