Aggregation Biases in Estimates of the Value per Statistical Life: Evidence from Longitudinal Matched Worker-Firm Data in Taiwan |
| |
Authors: | Wehn-Jyuan Tsai Jin-Tan Liu James K Hammitt |
| |
Institution: | (1) Vanderbilt University, 131 21st Avenue South, Nashville, TN 37203, USA |
| |
Abstract: | This study uses a unique longitudinally-linked employer–employee dataset to estimate the magnitude of bias in estimating the
value per statistical life (VSL) that arises from the conventional use of industry-average occupational risk. This unique
dataset, covering workers in Taiwan over the period 1998–2002, allows us to distinguish among potential sources of bias including
omitted variables and to control for the potential endogeneity of firm-specific job risk with respect to unobserved worker
and firm characteristics. We find that VSL estimates based on risk data aggregated by three-digit manufacturing SIC codes
are biased downward by an order of magnitude compared with estimates using firm-specific risk that control for endogeneity. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|