Self-Protection and Averting Behavior

This article discusses the use of occupational fatality rate data to estimate the additional pay workers receive for bearing greater risks, while controlling for other aspects of the job and characteristics of the worker. This tradeoff rate is typically referenced as the value of a statistical life (VSL). The extensive U.S. labor market literature generating VSL estimates has utilized several fatality rate measures which are typically matched to employment information on workers from large datasets.…

This article describes a stated preference study that estimates the value of numerous fatal health risks. The authors use a representative national survey that asks individuals to choose between costly risk-reducing programs and the status quo in randomized stated choice scenarios. The model allows the researchers to separate the effects of discounted net income and avoided illness years, post-illness years, and lost life-years. The authors calculate overall willingness to pay to reduce risks for a wide variety of…

This article discusses quality adjusted life years (QALYs) and willingness to pay (WTP), which are alternative measures of the value of reductions in health risks. Although both methods are based on individual preferences, the underlying assumptions differ. The different bases yield systematically different conclusions about the relative value of reducing health and mortality risks to individuals who differ in age, preexisting health conditions, income, and other factors. The choice of which method to use depends…