The economic value of fatal and non-fatal occupational risks in Mexico City using actuarial- and perceived-risk estimates.
Compensating wage differentials are used to estimate marginal rates of substitution between income and both fatal and non-fatal occupational-injury risks in the Mexico City metropolitan area. Data are obtained by in-person survey of almost 600 workers and include workers' perceived risks of fatal and non-fatal occupational injury supplemented by actuarial-risk estimates from government statistics. Results using both actuarial- and perceived-risk estimates are reasonably consistent. Estimates of the value per statistical life are between 235,000 US dollars and 325,000 US dollars and estimates of the value per statistical non-fatal injury are between 3500 US dollars and 11,000 US dollars (2002 US dollars). These values are much smaller than corresponding estimates for higher-income countries but are compatible with the small number of prior estimates for lower-income countries.
Hammitt
James K
JK
Harvard Center for Risk Analysis, Harvard University, 718 Huntington Avenue, Boston, MA 02115-5924, USA. jkh@harvard.edu
Ibarrarán
María Eugenia
ME
D000206:Actuarial Analysis; D003625:Data Collection; D015386:Hazardous Substances; D006801:Humans; D008800:Mexico; D017059:Models, Econometric; D016273:Occupational Exposure; D018570:Risk Assessment; D014505:Urban Population
D015386:Hazardous Substances