The Value of a Statistical Life for Transportation Regulations

Document Type

Article

Publication Title

Journal of Risk and Uncertainty

Publication Date

8-2015

ISSN

0895-5646

Page Number

53

Keywords

statistical life, benefits, labor market, occupational injuries

Disciplines

Labor and Employment Law | Law

Abstract

Policy applications of the value of a statistical life (VSL) often make a benefits transfer assumption that the VSL from one market context is broadly applicable to other contexts. The U.S. Department of Transportation’s estimate of $9.2 million is based on labor market estimates of VSL. This article examines whether there are any significant differences in labor market estimates of the VSL by the nature of the fatality, utilizing two different approaches that distinguish between fatalities resulting from transportation events and vehicle-related sources based on the Census of Fatal Occupational Injuries (CFOI) data. The labor market estimates of VSL generalize across transport and non-transport contexts so that it is appropriate to use labor market estimates of VSL to value the benefits of transport regulations. This result holds even after accounting for the level and composition of nonfatal job injuries.

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