Long-term welfare and investment impact of AIDS-related changes in family composition : evidence from Uganda

Although availability of quantitative information on the extent of AIDS in Africa is improving, the socio-economic implications of the epidemic remain poorly understood. This paper explores this issue in Uganda, focusing on households who received foster children between 1992 and 2000, a phenomenon that affected more than fifteen percent of households. We find that addition of a foster child resulted in significant reductions of per capita consumption, income, and household investment, which were more pronounced for the poor. Initial disadvantages in foster children's access to education for this group, were overcome in the course of Universal Primary Education (UPE) implementation, while new inequalities have emerged in access to health services. Foster children's ability to access services will thus be affected by the broader policy environment, as well as programs more specifically targeted at this group.