We use econometric methods based on the propensity score to estimate
the causal effect of HIV status on employment outcomes in South
Africa. Relying on rich data from a national survey, which included HIV
testing, we control for systematic differences between HIV-positive and
HIV-negative individuals. We provide the first nationally representative
estimates of the impact of HIV status on employment outcomes for southern
Africa. Being HIV-positive is associated with an increase of 6 to 7
percentage points in the likelihood of unemployment overall and 10 to
11 percentage points for the less educated. This disadvantage reinforces
existing inequalities in South Africa.