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Working Paper: Age Variation in Workers' Value of Statistical Life

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This paper develops a life-cycle model in which workers choose both consumption levels and job fatality risks, implying that the effect of age on the value of life is ambiguous. The empirical analysis of this relationship uses novel, age-dependent fatal and nonfatal risk variables. Workers’ value of statistical life exhibits an inverted U-shaped relationship over workers’ life cycle based on hedonic wage model estimates, age-specific hedonic wage estimates, and a minimum distance estimator. The value of statistical life for a 60-year old ranges from $2.5 million to $3.0 million n less than half the value for 30 to 40-year olds.

Keywords
Subject:
1. Benefits Analysis
1. Benefits Analysis - Valuation
1. Benefits Analysis - Valuation - Revealed Preference
1. Benefits Analysis - Valuation - Revealed Preference - Wage Differential
Media:
Multimedia

Paper Information
Author(s):
 Joseph E. Alby; W. Kip Viscusi
Institution Issuing Paper:
National Bureau of Economic Research
Status:
Final version working paper
Primary Content:
Empirical
Paper Date:
12/01/2003
Reference URL:
Adobe Acrobat file (539KB) Exit EPA Disclaimer
Pages:
53

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