The provision of life-saving antiretroviral (ARV) treatment has emerged as a key component of the
global response to HIV/AIDS, but very little is known about the impact of this intervention on the
welfare of children in the households of treated persons. We estimate the impact of ARV treatment
on children’s schooling and nutrition outcomes using longitudinal household survey data collected in
collaboration with a treatment program in western Kenya. We find that children’s weekly hours of
school attendance increase by over 20 percent within six months after treatment is initiated for the
adult household member. For boys in treatment households, these increases closely follow their
reduced market labor supply. Similarly, young children’s short-term nutritional status—as measured
by their weight-for-height Z-score—also improves dramatically. We also present evidence that the
impact of treatment is considerably larger when compared to the counterfactual scenario of no ARV
treatment. The results illustrate how intrahousehold allocations of time and resources are altered in
response to significant health improvements. Since the improvements in children’s schooling and
nutrition at these critical early ages will affect their socio-economic outcomes and wellbeing in
adulthood, the widespread provision of ARV treatment is likely to generate significant long-run
welfare benefits.