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Effect of Income Heterogeneity on Valuation of Mortality Risk in Taiwan: An Application of Unconditional Quantile Regression Method

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  • Je-Liang Liou

    (The Center for Green Economy, Chung-Hua Institution for Economic Research, No. 75 Chang-Hsing Street, Taipei 10672, Taiwan)

Abstract

According to theory and existing empirical results, heterogeneity in personal characteristics, with income variation being one of them, affects the marginal willingness to pay (WTP) for reducing fatal risk. In this study, the effect of income heterogeneity on the value of statistical life (VSL) in Taiwan through unconditional quantile regression analysis using the data collected by the “Manpower Utilization Survey” is investigated. The results of this empirical study show that the hedonic wage function that was constructed using empirical data from Taiwan was in line with the general form of non-linear function rather than the semi-log function that has been often used in previous studies, which should have great impact on the estimation of the VSL. The empirical results also show that the estimated VSL of Taiwanese labor varied with the difference in wages, which needs to be taken into account when discussing the public policies using VSL.

Suggested Citation

  • Je-Liang Liou, 2019. "Effect of Income Heterogeneity on Valuation of Mortality Risk in Taiwan: An Application of Unconditional Quantile Regression Method," IJERPH, MDPI, vol. 16(9), pages 1-15, May.
    • Handle: RePEc:gam:jijerp:v:16:y:2019:i:9:p:1620-:d:229529
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    References listed on IDEAS

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    2. Junkai Zhao & Xinxin Zhang & Zongmin Li, 2019. "The Relationship between Cognitive Impairment and Social Vulnerability among the Elderly: Evidence from an Unconditional Quantile Regression Analysis in China," IJERPH, MDPI, vol. 16(19), pages 1-12, September.
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    4. Je-Liang Liou & Pei-Ing Wu, 2021. "Monetary Health Co-Benefits and GHG Emissions Reduction Benefits: Contribution from Private On-the-Road Transport," IJERPH, MDPI, vol. 18(11), pages 1-19, May.

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