Working Paper: NBER ID: w29104
Authors: Kyle Greenberg; Michael Greenstone; Stephen P. Ryan; Michael Yankovich
Abstract: We estimate the value of a statistical life (VSL), or the willingness to trade-off wealth and mortality risk, among 430,000 U.S. Army soldiers choosing whether to reenlist from 2002-2010. Using a discrete choice random utility approach and significant variation in retention bonuses and mortality risk, we recover average VSL estimates between $500,000 and $900,000, an order of magnitude smaller than U.S. civilian labor market estimates. We then document substantial heterogeneity by recovering indifference curves between wealth and mortality risk. The VSL increases with mortality risk within type, and soldiers in combat occupations have lower VSLs than those in noncombat occupations.
Keywords: No keywords provided
JEL Codes: J17; J31; J45
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Bonuses (M52) | Reenlistment Rate (H56) |
| Mortality Risk (J17) | Reenlistment Rate (H56) |
| VSL (J17) | Reenlistment Decisions (J26) |
| Occupation Type (J29) | VSL (J17) |
| Risk Tolerance (G11) | Occupation Type (J29) |