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The Value of a Statistical Life: A Critical Review of Market Estimates Throughout the World
 Journal of Risk and Uncertainty
, 2003
"... A substantial literature over the past thirty years has evaluated tradeoffs between money and fatality risks. These values in turn serve as estimates of the value of a statistical life. This article reviews more than 60 studies of mortality risk premiums from ten countries and approximately 40 studi ..."
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Cited by 283 (27 self)
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A substantial literature over the past thirty years has evaluated tradeoffs between money and fatality risks. These values in turn serve as estimates of the value of a statistical life. This article reviews more than 60 studies of mortality risk premiums from ten countries and approximately 40 studies that present estimates of injury risk premiums. This critical review examines a variety of econometric issues, the role of unionization in risk premiums, and the effects of age on the value of a statistical life. Our metaanalysis indicates an income elasticity of the value of a statistical life from about 0.5 to 0.6. The paper also presents a detailed discussion of policy applications of these value of a statistical life estimates and related issues, including riskrisk analysis.
2011, Are estimates of the value of a statistical life exaggerated
 Journal of Health Economics
"... Are estimates of the value of a statistical life exaggerated? ..."
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Cited by 8 (2 self)
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Are estimates of the value of a statistical life exaggerated?
Draft — Comments appreciated Survival is a Luxury Good: The Increasing Value of a Statistical Life
, 2000
"... The value of changes in mortality risk is conventionally estimated by the marginal rate of substitution between income and mortality risk—the value per statistical life (VSL). Previous estimates of the income elasticity of VSL, obtained from metaanalysis of compensatingwagedifferential studies and ..."
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The value of changes in mortality risk is conventionally estimated by the marginal rate of substitution between income and mortality risk—the value per statistical life (VSL). Previous estimates of the income elasticity of VSL, obtained from metaanalysis of compensatingwagedifferential studies and from contingent valuation, are typically less than one, often 0.3 to 0.5. We present new estimates based on a series of compensatingwagedifferential estimates in a rapidly developing economy, Taiwan. The series is estimated over a 16 year period during which per capita GNP and annual earnings increased two and half times and the workplacefatality rate in manufacturing decreased by half. Over this period, estimated VSL increased tenfold, from about US$500,000 to US$5 million. The income elasticity of VSL is estimated as 2 to 3.1 1.
Estimating the Value of Safety with Labor Market Data: Are the Results Trustworthy? Beat Hintermann, a Anna Alberini a, and Anil Markandya b DRAFT
, 2006
"... We use panel data of UK workers to examine whether there is evidence of compensating wage differentials for workplace risk, and to recover estimates of the VSL implicit in workers ’ job choices. Risk data is available at the fourdigit industry and threedigit occupation level. We discuss various ec ..."
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We use panel data of UK workers to examine whether there is evidence of compensating wage differentials for workplace risk, and to recover estimates of the VSL implicit in workers ’ job choices. Risk data is available at the fourdigit industry and threedigit occupation level. We discuss various econometric problems associated with the hedonic wage approach, namely measurement error, instability of estimates and endogeneity. We find that with a classical measurement error, the true risk signal would be completely drowned out in our data, resulting in a dramatic downward bias of the OLS coefficient on risk, whereas a nonclassical measurement error would lead to a bias of unknown direction and magnitude. Further, the coefficient on risk changes significantly with the inclusion or exclusion of industry and/or occupation dummies, as well as with the addition of nonfatal risk. Lastly, we employ various estimation procedures that correct for endogeneity, taking advantage of the panel nature of our data, but the coefficient on risk is either not significant, negative or, as in the case of bluecollar workers, disproportionately large. We conclude that if compensating differentials for risk exist, measurement error and other econometric problems prevent us from observing them, and that VSL estimates based on OLS are biased.
OUTLINE PAPER DG ENVIRONMENT WORKSHOP ON MORTALITY VALUATION
, 2000
"... I. To what extent can we use one value for reductions in premature mortality regardless of the policy context? Should the value of mortality risk reductions vary with (i) age, (ii) income, (iii) health status and (iv) cause of death? ..."
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I. To what extent can we use one value for reductions in premature mortality regardless of the policy context? Should the value of mortality risk reductions vary with (i) age, (ii) income, (iii) health status and (iv) cause of death?
Correspondence:
, 2001
"... referees for comments on earlier drafts of this manuscript. The authors would also like to thank Jean Cousineau, John Garen, Henry Herzog, J. Paul Leigh, and JinTan Lui for providing additional data from their studies, and two anonymous referees for providing information to enhance and expand our d ..."
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referees for comments on earlier drafts of this manuscript. The authors would also like to thank Jean Cousineau, John Garen, Henry Herzog, J. Paul Leigh, and JinTan Lui for providing additional data from their studies, and two anonymous referees for providing information to enhance and expand our data.
WITHOUT PERMISSION ESTIMATING RISK PREMIA IN THE WORKPLACE: WHAT HAVE WE LEARNED? by
, 1998
"... A wide variety of policy proposals seek to reduce the risk of dying. Economic analyses of these policies require an estimate of the socalled “value of life ” in determining whether policy intervention is worthwhile. Theoretically, the appropriate value is the willingness to pay for a reduction in r ..."
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A wide variety of policy proposals seek to reduce the risk of dying. Economic analyses of these policies require an estimate of the socalled “value of life ” in determining whether policy intervention is worthwhile. Theoretically, the appropriate value is the willingness to pay for a reduction in risk, converted to the corresponding value of a statistical life. In numerous studies,
Correspondence:
, 2001
"... referees for comments on earlier drafts of this manuscript. The authors would also like to thank Jean Cousineau, John Garen, Henry Herzog, J. Paul Leigh, and JinTan Lui for providing additional data from their studies, and two anonymous referees for providing information to enhance and expand our d ..."
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referees for comments on earlier drafts of this manuscript. The authors would also like to thank Jean Cousineau, John Garen, Henry Herzog, J. Paul Leigh, and JinTan Lui for providing additional data from their studies, and two anonymous referees for providing information to enhance and expand our data.
Estimating the Value of Safety with Labor Market Data: Are the Results Trustworthy?
, 2006
"... We use a panel dataset of UK workers to look for evidence of compensating wage differentials for workplace risk. Risk data are available at the fourdigit industry level or at the threedigit occupation level. We discuss various econometric problems associated with the hedonic wage approach, namely ..."
Abstract
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We use a panel dataset of UK workers to look for evidence of compensating wage differentials for workplace risk. Risk data are available at the fourdigit industry level or at the threedigit occupation level. We discuss various econometric problems associated with the hedonic wage approach, namely measurement error, instability of the estimates to specification changes, and endogeneity. We find that if we assume a classical measurement error, the true risk signal would be completely drowned out in our data, which would imply a severe downward bias of the OLS coefficient on risk. But this prediction is at odds with our OLS estimates of the VSL, which are large, especially for blue collar workers. Further, the coefficient on risk changes varies dramatically with the inclusion or exclusion of industry and/or occupation dummies, as well as with the addition of nonfatal risk. When we instrument for risk, which we treat as endogenous with wage, and apply 2SLS or a procedure suggested by Garen (1988), we find negative associations between risk and wages for all workers, which is against the notion of compensating wage differentials, or, for bluecollar workers, extremely large VSL figures. Finally, we exploit the panel nature of our data to apply various estimation