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Labor Market Estimates of the Senior Discount for the Value of Statistical Life Author info | Abstract | Publisher info | Download info | Related research | Statistics Viscusi, W. Kip
Aldy, Joseph () (Resources for the Future)
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This article develops the first measures of age-industry job risks to examine the age variations in the value of statistical life. Because of the greater risk vulnerability of older workers, they face flatter wage-risk gradients than younger workers, which we show to be the case empirically. Accounting for this heterogeneity in hedonic market equilibria leads to estimates of the value of statistical life-age relationship that follows an inverted-U shape. The estimates of the value of statistical life range from $6.4 million for younger workers to a peak of $9.0 million for those age 35-44, and then a decline to $3.7 million for those age 55-62. The decline of the estimated VSL with age is consistent with there being some senior discount in the Clear Skies Initiative analysis.
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Paper provided by Resources For the Future in its series Discussion Papers with number
dp-06-12.
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Date of creation: 27 Feb 2006Date of revision:
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Keywords: value of statistical life ; job risks ; senior discount ; compensating differentials ; Other versions of this item:
Find related papers by JEL classification: J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income I12 - Health, Education, and Welfare - - Health - - - Health Production
This paper has been announced in the following NEP Reports :
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Aldy, Joseph E. & Viscusi, W. Kip, 2007.
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