Doubling the Estimated Value of Life: Results Using New Occupational Fatality Data

Abstract
Using a new series of data on occupational fatalities compiled by the National Institute for Occupational Safety and Health, the authors reassess value-of-life calculations based on labor market tradeoffs between fatality risks and wages. The new data are less subject to the problems of measurement error that plague previously used measures of risk. They indicate higher risk levels than previously believed and a significantly different composition of risk levels within industries. The more comprehensive risk data yield value-of-life estimates of $5 million or more-at least twice as large as estimates obtained using the Bureau of Labor Statistics risk data employed in previous studies.