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The economic value of fatal and non‐fatal occupational risks in Mexico City using actuarial‐ and perceived‐risk estimates

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  • James K. Hammitt
  • María Eugenia Ibarrarán

Abstract

Compensating wage differentials are used to estimate marginal rates of substitution between income and both fatal and non‐fatal occupational‐injury risks in the Mexico City metropolitan area. Data are obtained by in‐person survey of almost 600 workers and include workers' perceived risks of fatal and non‐fatal occupational injury supplemented by actuarial‐risk estimates from government statistics. Results using both actuarial‐ and perceived‐risk estimates are reasonably consistent. Estimates of the value per statistical life are between US$235 000 and US$325 000 and estimates of the value per statistical non‐fatal injury are between US$3500 and US$11 000 (2002 US dollars). These values are much smaller than corresponding estimates for higher‐income countries but are compatible with the small number of prior estimates for lower‐income countries. Copyright © 2006 John Wiley & Sons, Ltd.

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  • James K. Hammitt & María Eugenia Ibarrarán, 2006. "The economic value of fatal and non‐fatal occupational risks in Mexico City using actuarial‐ and perceived‐risk estimates," Health Economics, John Wiley & Sons, Ltd., vol. 15(12), pages 1329-1335, December.
    • Handle: RePEc:wly:hlthec:v:15:y:2006:i:12:p:1329-1335
    DOI: 10.1002/hec.1137
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    1. World Bank, 2014. "Leveling the Field for Renewables : Mexico's New Policy Framework for Incorporating External Costs of Electricity Generation," World Bank Publications - Reports 20061, The World Bank Group.
    2. Hammitt James K. & Robinson Lisa A, 2011. "The Income Elasticity of the Value per Statistical Life: Transferring Estimates between High and Low Income Populations," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2(1), pages 1-29, January.
    3. Massimo Filippini & Adán L. Martínez-Cruz, 2016. "Impact of environmental and social attitudes, and family concerns on willingness to pay for improved air quality: a contingent valuation application in Mexico City," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 25(1), pages 1-18, December.
    4. Natina Yaduma & Mika Kortelainen & Ada Wossink, 2013. "Estimating Mortality and Economic Costs of Particulate Air Pollution in Developing Countries: The Case of Nigeria," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 361-387, March.
    5. Ahmad Mujtaba Khan & Asma Hyder, 2017. "The Statistical Value of Injury Risk in Pakistan’s Construction and Manufacturing Sectors," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 22(1), pages 1-18, Jan-June.

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