Skill and the Value of LifeJournal of Political Economy (2002)
AbstractThe value of statistical life (VSL) can be inferred through real-world wage-fatality risk trade-offs made across different occupations. paper shows that the VSL based on the wage risk trade-off tends be biased upward if it does not account for the diversity of unobservable skill to cope privately with job risk. This upward arises because the highest required wage differential among the workers is divided by their average risk across the population.
Publication DateOctober, 2002
Citation InformationJason Shogren and Tommy Stamland. "Skill and the Value of Life" Journal of Political Economy Vol. 110 Iss. 5 (2002)
Available at: http://works.bepress.com/jason_shogren/4/