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The value of a statistical life in Chile

Author

Listed:
  • Marcela Parada-Contzen
  • Andrés Riquelme-Won
  • Felipe Vasquez-Lavin

Abstract

In this article, we estimated the value of a statistical life and the value of a statistical injury (VSI) for Chilean workers using a combination of data from the year 2006 from the Chilean National Socio-Economic Survey, which provides workers’ characteristics, and annual statistics from the Chilean Safety Association, which provide labor accident risk data. We estimated a hedonic log-wage equation taking into account of selection bias and endogeneity. The estimated value of a statistical life was US$4,625,958, which increased by almost a factor three after correcting for endogeneity (US$12,826,520). On the other hand, the estimated VSI was US$30,840. The uncorrected results were lower than the values reported by other authors for various developed countries, but greater than those estimated using indirect approaches for Chile. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Marcela Parada-Contzen & Andrés Riquelme-Won & Felipe Vasquez-Lavin, 2013. "The value of a statistical life in Chile," Empirical Economics, Springer, vol. 45(3), pages 1073-1087, December.
    • Handle: RePEc:spr:empeco:v:45:y:2013:i:3:p:1073-1087
    DOI: 10.1007/s00181-012-0660-7
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    Cited by:

    1. Marcela V. Parada‐Contzen, 2019. "The Value of a Statistical Life for Risk‐Averse and Risk‐Seeking Individuals," Risk Analysis, John Wiley & Sons, vol. 39(11), pages 2369-2390, November.
    2. Rivera, Nathaly M., 2021. "Air quality warnings and temporary driving bans: Evidence from air pollution, car trips, and mass-transit ridership in Santiago," Journal of Environmental Economics and Management, Elsevier, vol. 108(C).
    3. Shah Rome Khan & Muhammad Imran Khan & Dr. Sardar Javaid Iqbal Khan, 2023. "An Investigation into the Statistical Significance of Labor Force Longevity in Brick Kilns and Marble Industry: A Case Study of Peshawar," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 679-688.
    4. Polat, Sezgin, 2013. "Wage Compensation for Risk: The Case of Turkey," GIAM Working Papers 13-11, Galatasaray University Economic Research Center.
    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.
    6. N. Witvorapong & T. Komonpaisarn, 2020. "The Value of a Statistical Life in Thailand: Evidence from the Labour Market," Journal of Consumer Policy, Springer, vol. 43(3), pages 491-518, September.
    7. Enrico Miglino & Nicolás Navarrete H. & Gonzalo Navarrete H. & Pablo Navarrete H., 2023. "Health Effects of Increasing Income for the Elderly: Evidence from a Chilean Pension Program," American Economic Journal: Economic Policy, American Economic Association, vol. 15(1), pages 370-393, February.
    8. Marcela Parada-Contzen & Felipe Vásquez-Lavín, 2019. "An analysis of economic incentives to encourage organ donation: evidence from Chile," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-18, December.
    9. W. Kip Viscusi & Clayton Masterman, 2017. "Anchoring biases in international estimates of the value of a statistical life," Journal of Risk and Uncertainty, Springer, vol. 54(2), pages 103-128, April.

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    More about this item

    Keywords

    Value of a statistical life; Value of a statistical injury; Hedonic wages; J17; J28;
    All these keywords.

    JEL classification:

    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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