The fatality and morbidity components of the value of statistical life

Elissa Philip Gentry; W Kip Viscusi

doi:10.1016/j.jhealeco.2016.01.011

The fatality and morbidity components of the value of statistical life

J Health Econ. 2016 Mar:46:90-9. doi: 10.1016/j.jhealeco.2016.01.011. Epub 2016 Feb 3.

Authors

Elissa Philip Gentry¹, W Kip Viscusi²

Affiliations

¹ Vanderbilt University, 131, 21st Avenue South, Nashville, TN 37203, United States. Electronic address: elissa.philip@vanderbilt.edu.
² University Distinguished Professor of Law, Economics, and Management, Vanderbilt University 131, 21st Avenue South, Nashville, TN 37203, United States. Electronic address: kip.viscusi@vanderbilt.edu.

PMID: 26896740
DOI: 10.1016/j.jhealeco.2016.01.011

Abstract

The fatality risk-money tradeoff that is the value of a statistical life (VSL) may vary with the nature of the fatality event. While all fatalities involve loss of future life expectancy, the morbidity effects and their duration may differ. This article analyzes fatality risks accompanied by morbidity effects of different duration to disentangle the mortality and morbidity components of VSL using data from the Census of Fatal Occupational Injuries (CFOI). The VSL is comprised of the sum of the value of the fatality risk and the value of the morbidity risk. Labor market valuations of morbidity risks are positive, even for fatalities that are caused by traumatic injuries. The value of the fatality risk is the dominant component of VSL, rather than the value of the morbidity risk.

Keywords: Census of Fatal Occupational Injuries; Fatality; Morbidity; VSL; Value of a statistical life.

MeSH terms

Accidents, Occupational / mortality*
Censuses*
Humans
Models, Statistical
Morbidity*
Policy Making
Risk Assessment / statistics & numerical data
United States / epidemiology
Value of Life / economics