Abstract
In this article, we estimated the value of a statistical life and the value of a statistical injury (VSI) for Chilean workers using a combination of data from the year 2006 from the Chilean National Socio-Economic Survey, which provides workers’ characteristics, and annual statistics from the Chilean Safety Association, which provide labor accident risk data. We estimated a hedonic log-wage equation taking into account of selection bias and endogeneity. The estimated value of a statistical life was US$4,625,958, which increased by almost a factor three after correcting for endogeneity (US$12,826,520). On the other hand, the estimated VSI was US$30,840. The uncorrected results were lower than the values reported by other authors for various developed countries, but greater than those estimated using indirect approaches for Chile.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Notes
All values throughout this paper are expressed in US dollars of 2006.
References
Arabsheibani G, Marin A (2001) Self-selectivity bias with a continuous variable: potential pitfall in a common procedure. Appl Econ 33:1903–1910
Baranzini A, Ferro Luzzi G (2001) The economic value of risks to life: evidence from the Swiss labour market. Swiss J Econ Stat 137:149–170
Bowland BJ, Beghin JC (2001) Robust estimates of value of a statistical life for developing economies: an application to pollution and mortality in Santiago. J Policy Model 23:385–396
Cousineau J, Lacroix R, Girard AM (1992) Occupational hazard and wage compensating differentials. Rev Econ Stat 74:166–169
Field F, Field M (2008) Environmental economics. McGraw-Hill Irwin, Boston
Freeman AM (2003) The measurement of environmental and resource values: theory and methods. Resources for the Future, Inc., Washington, D.C.
Garen JE (1988) Compensating wage differentials and the endogeneity of Job riskiness. Rev Econom Stat 70:9–16
Gurdenson M, Hyatt D (2001) Workplace risks and wages: Canadian evidence from alternative models. Can J Econ 34:377–395
Hausman JA (1978) Specification tests in econometrics. Econometrica 46:1251–1271
Heckman J (1979) Sample selection bias as a specification error. Econometrica 47:153–161
Hwang H, Reed W, Hubbard C (1992) Compensating wage differentials and unobserved productivity. J Polit Econ 100:835–858
Kim S, Fishback PV (1993) Institutional change, compensating differentials, and accident risk in American railroading, 1892–1945. J Econ Hist 53:796–823
Kniesner TJ, Leeth JD (1991) Compensating wage differentials for fatal injury risk in Australia, Japan, and the United States. J Risk Uncertainty 4:75–90
Knieser T, Viscusi W, Woock C, Ziliaz J (2012) The value of a statistical life: evidence from panel data. Rev Econ Stat 94(1):74–87
Kochi I (2007) Essays on the value of a statistical life. Economics Dissertations, Paper 29
Liu JT, Hammitt JK (1999) Perceived risk and value of workplace safety in a developing country. J Risk Res 2:263–275
Marin A, Psacharopoulos H (1982) The reward for risk in the labor market: evidence from the United Kingdom and a reconciliation with other studies. J Polit Econ 90:827–853
Martinello F, Meng R (1992) Workplace risks and the value of hazard avoidance. Can J Econ 25:333–345
McConnel C, Brue S, Macpherson D (2006) Contemporary labour economics. McGraw-Hill Irwin, Boston
Meng R, Smith D (1990) The valuation of risk of death in public sector decision-making. Can Public Policy 16:137–144
Miller P, Mulvey C, Norris K (1997) Compensating differentials for risk of death in Australia. Econ Rec 73:363–372
Miller T (2000) Variations between countries in values of statistical life. J Transp Econ Policy 34:169–188
Riera A, Ripoll A, Mateu J (2007) Estimacin del valor estadstico de la vida en Espaa: Una aplicacin del Mtodo de Salarios Hednicos. Revista de Economa Pblica 181:29–48
Scheidel W (2010) Real wages in early economies: evidence for living standards from 1800 BCE to 1300 CE. J Econ Soc Hist Orient 53:425–462
Shanmugam K (2001) Self-selection bias in the estimates of compensating differentials for job risks in India. J Risk Uncertainty 22(3):263–275
Siebert W, Wei X (1994) Compensating wage differentials for workplace accidents: evidence for union and nonunion workers in the UK. J Risk Uncertainty 9(1):61–76
Siebert W, Wei X (1998) Wage compensation for job risks: the case of Hong Kong. Asian Econ J 12(2):171–181
Stock JH, Yogo M (2005) Testing for weak instruments in linear IV regression. In: Andrews DWK, Stock JH (eds) Identification and inference for econometric models: essays in honor of Thomas Rothenberg. Cambridge University Press, Cambridge, pp 80–108
Smith R (1974) The feasibility of an injury tax approach to occupational safety. Law Contemp Problems 38(4):730–744
Timmins C, Murdock J (2007) A revealed preference approach to the measurement of congestion in travel cost models. J Environ Econ Manag 53:230–249
Viscusi WK (1993) The value of risk to life and health. J Econ Literature XXXI:1912–1946
Viscusi WK, Aldy JE (2003) The value of a statistical life: a critical review of market estimates throughout the world. J Risk Uncertainty 27(1):5–76
Viscusi WK, Aldy JE (2007) Labor market estimates of the senior discount for the value of statistical life. J Environ Econ Manag 53(3):377–392
Wooldridge J (2002) Econometric analysis of cross section and panel data. The MIT Press, Cambridge
Weiss P, Maier G, Gerking S (1986) The economic evaluation of job safety: a methodological survey and some estimates for Austria. Empirica 13(1):53–67
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Parada-Contzen, M., Riquelme-Won, A. & Vasquez-Lavin, F. The value of a statistical life in Chile. Empir Econ 45, 1073–1087 (2013). https://doi.org/10.1007/s00181-012-0660-7
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00181-012-0660-7