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Changes in the Value of Life: 1940-1980

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  • Dora L. Costa
  • Matthew E. Kahn

Abstract

We present the first nation wide value of life estimates for the United States at more than one point in time. Our estimates are for every ten years between 1940 and 1980, a period when declines in fatal accident rates were historically unprecedented. Our estimated elasticity of value of life with respect to per capita GNP is 1.5 to 1.7. We illustrate the importance of rising value of life for policy evaluation by examining the benefits of improved longevity since 1900, showing that the current marginal increase in longevity is more valuable than the large increase in the first half of the twentieth century.

Suggested Citation

  • Dora L. Costa & Matthew E. Kahn, 2002. "Changes in the Value of Life: 1940-1980," NBER Working Papers 9396, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:9396
    Note: AG DAE HC HE
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    More about this item

    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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