Reducing the vulnerability of adolescents and young people to HIV and STIs

Despite the resultant disutility, some people, in particular the poor, are engaged in behavior carrying social stigma. Empirical economic studies on stigma behavior are rare, largely due to the formidable challenges of collecting data on stigmatized goods and services. In this paper, I examine blood plasma sales in China, widely regarded as a stigmatized behavior, using two primary datasets. The first is a three-wave census-type household survey from 18 villages which enables us to examine the evolving patterns, and determinants of donations. The second is data on detailed gift exchange records of all households in three out of the 18 villages which allows me to define reference groups, measure the intensity of social interactions and identify peer effects using a novel spatial instrument strategy. I find that both peer effects and concern over socioeconomic status influence plasma donation decisions. The intensity of social interactions matters in identification. Peer effects are directional and work through preference interactions that reduce stigma. The results also indicate that families with unmarried sons are more likely to donate plasma in order to offset costs of successfully getting married in a tight marriage market, such as a bigger house, a higher bride price and a more lavish wedding banquet.