%0 Report
        %A Hamilton, Barton H.
%A Hincapié, Andrés
%A Kalish, Emma C.
%A Papageorge, Nicholas W.
        %T Medical Innovation and Health Disparities
        %D 2022
        %8 2022 Nov
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 15711
        %U https://www.iza.org/publications/dp15711
        %X Health-maximizing and welfare-maximizing behaviors can be at odds, especially among disadvantaged groups, generating health disparities. We estimate a lifecycle model of medication and labor supply decisions using data on HIV-positive men. We evaluate an effective HIV treatment innovation that had harsh side effects: HAART. Measured in lifetime utility gains, HAART disproportionately benefitted higher-education men. Lower-education men were more likely to avoid the side effects of HAART that interfered with work. A counterfactual mandate to use HAART improves health but increases inequality because low-education individuals work less. A counterfactual non-labor income subsidy increases HAART adoption and improves health among lower-education individuals.
        %K health disparities
%K health behaviors
%K dynamic demand
%K side effects
%K structural models
%K HIV/AIDS