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Age Variations in Workers' Value of Statistical Life Joseph E. Aldy W. Kip Viscusi, Harvard Law School Subsequently published as "Labor Markets Estimates of the Senior Discount for the Value of Statistical Life," in Journal of Environmental Economics and Management, Vol. 53, 2007, 377-392. Download the Paper (PDF format) - March 30, 2004 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing. ABSTRACT: This paper develops a life-cycle model in which workers choose both consumption levels and job fatality risks, implying that the effect of age on the value of life is ambiguous. The empirical analysis of this relationship uses novel, age-dependent fatal and nonfatal risk variables. Workers' value of statistical life exhibits an inverted U-shaped relationship over workers' life cycle based on hedonic wage model estimates, age-specific hedonic wage estimates, and a minimum distance estimator. The value of statistical life for a 60-year old ranges from $2.5 million to $3.0 million - less than half the value for 30 to 40-year olds. SUGGESTED CITATION: Joseph E. Aldy and W. Kip Viscusi, "Age Variations in Workers' Value of Statistical Life" (March 30, 2004). Harvard Law School. Harvard Law School John M. Olin Center for Law, Economics and Business Discussion Paper Series. Paper 468. http://lsr.nellco.org/harvard/olin/papers/468 | REPOSITORY HOME  | SEARCH  | MY ACCOUNT  | NELLCO HOME | Powered by bepress.