Abstract
The HIV/AIDS pandemic has caused numerous deaths. One consequence of this is the prevalence of orphanhood. We investigate whether individuals who were orphaned as a child suffer long-term consequences through an underinvestment in social capital. We conduct a lab-in-the-field experiment in rural Uganda where the HIV/AIDS pandemic hit hardest. Subjects made decisions to contribute to a public good. Results indicate that adults who were orphaned as a child contribute less. We provide evidence that an important channel through which the mechanism operates is through social norms. Subjects orphaned tend to have lower expectations regarding typical behavior of others. A strong interaction effect is identified where those with the lowest expectations who were also orphaned contribute the least to the public good. Thus, we document orphanhood’s long-term consequences to a community.
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