The value of a statistical life: A comparison of two approaches

Using an original data set, this article presents the first effort to compare systematically the values of a statistical life obtained from the two main methodologies existing in the literature—the revealed-preference approach (wage-risk analysis) and the contingent-valuation approach—applied to the same sample of individuals. A survey was conducted in the Montreal area with a questionnaire containing two series of questions: one set of contingent-valuation questions and one set of questions pertaining to the information necessary for performing a wage-risk study. The results show that the values of a statistical life obtained from each method are different from each other.This research was supported by the Fonds F.C.A.R. of the Quebec government, the Social Sciences and Humanities Research Council, and by the Fondation Mercure of l'École des Hautes Études Commerciales. The authors want to thank the editor and an anonymous referee for their useful comments.     

Is Workers' Compensation a Substitute for Unemployment Insurance?

This paper examines how the Workers' Compensation (WC) and Unemployment Insurance (UI) programs interact to influence the duration of claims due to workplace accidents. We use longitudinal WC administrative micro-data on more than 30,000 workers in the Canadian construction industry for the period 1976–1986. For the estimations, we use the Meyer (1990) semi-parametric proportional hazard model. Our results show, in particular, that a reduction in the UI replacement ratio is associated with an increase in the duration of claims due to severe accidents that are difficult to diagnose. Moreover, the duration of spells on WC is much higher when an accident occurs in December, a month which corresponds to the beginning of the lay-off season in the construction sector. This result is consistent with the fact that WC benefits are more generous than UI benefits in Canada.