eprintid: 44975 rev_number: 21 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/04/49/75 datestamp: 2022-03-21 10:36:32 lastmod: 2023-01-26 10:35:43 status_changed: 2023-01-26 10:35:42 type: monograph metadata_visibility: no_search creators_name: Hammitt, James K. creators_name: Liu, Jin-Tan creators_name: Liu, Jin-Long creators_id: james.hammitt@tse-fr.eu creators_idrefppn: 183451279 creators_halaffid: 1002422 title: Is survival a luxury good? Income elasticity of the value per statistical life ispublished: pub subjects: subjects_ECO abstract: The value of a change in mortality risk is conventionally described by the marginal rate of substitution between income and mortality risk—the value per statistical life (VSL). The income elasticity of VSL is important for estimating how the value of mortality risk varies with time (for evaluating programs with long-lived effects) and across populations with different income levels (for evaluating programs with international consequences). Previous estimates of income elasticity based on meta-analysis of wage-differential studies and cross-sectional comparisons in stated-preference studies suggest values between about one-half and one. We present new estimates based on a 16-year series of wage-differential estimates in Taiwan. Between 1982 and 1997, estimated VSL increased by a factor of five while household labor earnings increased by 60 percent, per capita GDP increased two-and-a-half fold, and the occupational fatality rate in manufacturing and service industries decreased by half. Comparing the growth of VSL with that of household income implies the income elasticity is between about two and five but this estimate may be biased by the endogeneity of VSL, which is affected by workers’ job choices. Using a two-stage approach to control for endogeneity yields estimates of the income elasticity of VSL between two-thirds and one, consistent with estimates from other approaches. date: 2022-03 date_type: published publisher: TSE Working Paper official_url: http://tse-fr.eu/pub/126750 faculty: tse divisions: tse language: en has_fulltext: TRUE view_date_year: 2022 full_text_status: public monograph_type: working_paper series: TSE Working Paper volume: 22-1319 place_of_pub: Toulouse pages: 29 institution: Université Toulouse 1 Capitole. department: Toulouse School of Economics. book_title: TSE Working Paper oai_identifier: oai:tse-fr.eu:126750 harvester_local_overwrite: department harvester_local_overwrite: publish_to_hal harvester_local_overwrite: pending harvester_local_overwrite: creators_idrefppn harvester_local_overwrite: title harvester_local_overwrite: creators_halaffid harvester_local_overwrite: pages harvester_local_overwrite: place_of_pub harvester_local_overwrite: institution harvester_local_overwrite: creators_id oai_lastmod: 2023-01-25T07:22:55Z oai_set: tse site: ut1 publish_to_hal: FALSE citation: Hammitt, James K. , Liu, Jin-Tan and Liu, Jin-Long (2022) Is survival a luxury good? Income elasticity of the value per statistical life. TSE Working Paper, n. 22-1319, Toulouse document_url: https://publications.ut-capitole.fr/id/eprint/44975/1/wp_tse_1319.pdf