Compensating Wage Differentials and AIDS Risk

Working Paper: NBER ID: w10861

Authors: Jeff Desimone; Edward J. Schumacher

Abstract: We examine the effect of HIV/AIDS infection risks on the earnings of registered nurses (RNs) and other health care workers by combining data on metropolitan statistical area (MSA) AIDS prevalence rates with annual 1987 --2001 Current Population Survey (CPS) and quadrennial 1988 --2000 National Sample Survey of Registered Nurses (SRN) data. Holding constant wages of control groups that are likely not exposed to AIDS risks and group-specific MSA fixed effects, a 10 percent increase in the AIDS rate raises RN earnings by about 0.8 percent in post-1992 samples, when AIDS rates were falling but a more comprehensive categorization of AIDS was used by the CDC. AIDS wage differentials are much larger for RNs and non-nursing health practitioners than for other nursing and health care workers, suggesting that this differential represents compensation paid for job-related exposure to potentially HIV-infected blood.

Keywords: HIV/AIDS; wage differentials; health care workers; registered nurses

JEL Codes: I110; J310


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
AIDS rates (O15)RN earnings (Q30)
AIDS rates (O15)wages of health care workers (J39)
AIDS rates (O15)AIDS wage differentials (J31)
RN earnings (Q30)AIDS wage differentials (J31)
AIDS rates (O15)exposure to HIV-infected blood (I19)
exposure to HIV-infected blood (I19)RN earnings (Q30)
AIDS wage differentials (J31)job-related exposure to HIV (J28)

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