Did we Overestimate the Value of Health?

Details

Serval ID
serval:BIB_886F310162FC
Type
Article: article from journal or magazin.
Collection
Publications
Title
Did we Overestimate the Value of Health?
Journal
Journal of Risk and Uncertainty
Author(s)
Lalive R.
ISSN
0895-5646
Publication state
Published
Issued date
2003
Peer-reviewed
Oui
Volume
27
Number
2
Pages
171-193
Language
english
Abstract
Adam Smith's idea that wage differences reveal preferences for risk rests on strong theoretical foundations. This paper argues, however, that the dominant approach to identify compensating wage differentials?regressing individual wages on aggregate measures of risk?may lead to arbitrary estimates of these risk differentials. In a dataset with information on both, the incidence of illnesses or injuries across firms and industries, I calculate an implicit value of one injury or illness of about (1990) USD 18,800 pursuing the dominant approach. In contrast, regressing wages on the incidence of risk across firms produces a value of one injury or illness of about USD 11,300.
Keywords
sating wage differentials, illness, injury
Web of science
Create date
19/11/2007 11:38
Last modification date
20/08/2019 15:47
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