The Value of Remaining Lifetime Is Close to Estimated Values of Life

Emmett B. Keeler, RAND

Abstract

Workers under 50 on average will spend 10–20% of their future hours working. So, assuming they value leisure time at the wage rate, the value of their lives is 5–10 times their future lifetime earnings. This value is close to values of life estimated by compensating wage differentials or willingness to pay.