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.
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All values throughout this paper are expressed in US dollars of 2006.
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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
- Value of a statistical life
- Value of a statistical injury
- Hedonic wages