Skill and the Value of Life

Posted: 11 Nov 2002

See all articles by Jason F. Shogren

Jason F. Shogren

University of Wyoming

Tommy Stamland

Norwegian School of Economics (NHH) - Department of Finance

Abstract

The value of statistical life (VSL) can be inferred through real-world wage-fatality risk trade-offs made across different occupations. This paper shows that the VSL based on the wage-risk trade-off tends to be biased upward if it does not account for the diversity of workers; unobservable skill to cope privately with job risk. This upward bias arises because the highest required wage differential among the workers is divided by their average risk across the population.

Suggested Citation

Shogren, Jason F. and Stamland, Tommy, Skill and the Value of Life. Available at SSRN: https://ssrn.com/abstract=327065

Jason F. Shogren (Contact Author)

University of Wyoming ( email )

Department of Economics
BU292
Laramie, WY 82071-3985
United States
307-766-5430 (Phone)
307-766-5090 (Fax)

Tommy Stamland

Norwegian School of Economics (NHH) - Department of Finance ( email )

Helleveien 30
N-5045 Bergen
Norway
+47 55 95 93 08 (Phone)
+47 55 95 96 50 or 47 (Fax)

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