Are estimates of the value of a statistical life exaggerated?

The magnitude of the value of a statistical life (VSL) is critical to the evaluation of many health and safety initiatives. To date, the large and rigorous VSL research literature has not explicitly accommodated publication selectivity bias (i.e., the reduced probability that insignificant or negati...

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Bibliographic Details
Published in:Journal of health economics 2012-01, Vol.31 (1), p.197-206
Main Authors: Doucouliagos, Chris, Stanley, T.D., Giles, Margaret
Format: Article
Language:English
Subjects:
Asymmetry
Cost-Benefit Analysis
Econometrics
Estimation
Estimation bias
Health
Health administration
Health economics
Health initiatives
Hedonism
Heterogeneity
Humans
Magnitude
Meta-regression analysis
Probability
Publication Bias
Regression Analysis
Selection Bias
Selectivity bias
Studies
Value of Life - economics
Value of statistical life
Wages
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Summary:The magnitude of the value of a statistical life (VSL) is critical to the evaluation of many health and safety initiatives. To date, the large and rigorous VSL research literature has not explicitly accommodated publication selectivity bias (i.e., the reduced probability that insignificant or negative VSL values are reported). This study demonstrates that doing so is essential. For studies that employ hedonic wage equations to estimate VSL, correction for selection bias reduces the average value of a statistical life by 70–80%. Our meta-regression analysis also identifies several sources for the wide heterogeneity found among reported VSL estimates.
ISSN:0167-6296
1879-1646
DOI:10.1016/j.jhealeco.2011.10.001