The Value of Life: Estimates with Risks by Occupation and Industry
W. Kip Viscusi
Vanderbilt University - Law School; National Bureau of Economic Research (NBER); Vanderbilt University - Department of Economics; Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - Strategy and Business Economics
Harvard Law and Economics Discussion Paper No. 422
The worker fatality risk variable constructed for this paper uses BLS data on total worker deaths by both occupation and industry over the 1992-1997 period rather than death risks by occupation or industry alone, as in past studies. The subsequent estimates using 1997 CPS data indicate a value of life of $4.7 million for the full sample, $7.0 million for blue-collar males, and $8.5 million for blue-collar females. Unlike previous estimates, these values account for the influence of clustering of the job risk variable and compensating differentials for both workers' compensation and nonfatal job risks.
Number of Pages in PDF File: 42
JEL Classification: J3, I1
Date posted: June 16, 2003