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¿Qué podemos saber sobre el Valor Estadístico de la Vida en España utilizando datos laborales?

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  • Martinez Perez, Jorge Eduardo
  • Mendez Martinez, Ildefonso

Abstract

This paper analyzes what can be learned about the value of a statistical life (VSL) using the hedonic wage model. The time series variation of cross sectional estimates, along with the endogeneity of risk choices and the absence of adequate instruments recommends moving to panel data analysis. These estimates show that the evidence of a positive and significant VSL stems from people changing jobs possibly endogenously. Once again the absence of valid instruments recommends an alternative strategy and we move to identify bounds on the VSL. Controlling for measurement error and individual heterogeneity yields a range for the estimated VSL of 2.8-8.3 million euros. The former number is the lowest-low VSL that the spanish public administration should use in the evaluation of public policies.

Suggested Citation

  • Martinez Perez, Jorge Eduardo & Mendez Martinez, Ildefonso, 2008. "¿Qué podemos saber sobre el Valor Estadístico de la Vida en España utilizando datos laborales?," MPRA Paper 11165, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:11165
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    More about this item

    Keywords

    value of statistical life; hedonic wage model; endogeneity; panel data models;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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