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.