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The Heterogeneous Value of a Statistical Life: Evidence from U.S. Army Reenlistment Decisions

Author

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  • Kyle Greenberg
  • Michael Greenstone
  • Stephen P. Ryan
  • Michael Yankovich

Abstract

We estimate the value of a statistical life (VSL), or the willingness to trade-off wealth and mortality risk, among 430,000 U.S. Army soldiers choosing whether to reenlist from 2002-2010. Using a discrete choice random utility approach and significant variation in retention bonuses and mortality risk, we recover average VSL estimates between $500,000 and $900,000, an order of magnitude smaller than U.S. civilian labor market estimates. We then document substantial heterogeneity by recovering indifference curves between wealth and mortality risk. The VSL increases with mortality risk within type, and soldiers in combat occupations have lower VSLs than those in noncombat occupations.

Suggested Citation

  • Kyle Greenberg & Michael Greenstone & Stephen P. Ryan & Michael Yankovich, 2021. "The Heterogeneous Value of a Statistical Life: Evidence from U.S. Army Reenlistment Decisions," NBER Working Papers 29104, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29104
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    Cited by:

    1. Thomas J. Kniesner & W. Kip Viscusi, 2023. "Compensating Differentials for Occupational Health and Safety Risks: Implications of Recent Evidence," Research in Labor Economics, in: 50th Celebratory Volume, volume 50, pages 83-116, Emerald Group Publishing Limited.
    2. John Anders & Craig Wesley Carpenter, 2021. "Run Effects of Military Service: Evidence from the 911 Attacks," Working Papers 21-36, Center for Economic Studies, U.S. Census Bureau.

    More about this item

    JEL classification:

    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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