Document Type

Working Paper

Publication Date

2016

College/Unit

Chambers College of Business and Economics

Document Number

16-10

Department/Program/Center

Economics

Abstract

The HIV/AIDS pandemic has caused numerous deaths. One unfortunate consequence of this is the deterioration in family structure and the prevalence of orphanhood. We investigate whether individuals who were orphaned as a child suffer long-term consequences through a underinvestment in their social capital. We conduct a framed field experiment in rural, southern Uganda where the HIV/AIDS pandemic hit hardest. In the experiment, subjects made decisions to contribute to a public good. Results indicate that adults who were orphaned as a child free ride more contributing less to the public good. We explore the mechanism through which their background operates. We provide evidence that an important channel is through social norms. Subjects orphaned when young tend to have lower expectations regarding typical behavior of others. A strong interaction effect is identified where those with the lowest expectations who were also orphaned contribute the least to the public good. Thus, we document long-term consequences to a community of the adverse health event.

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