Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data

Abdelaziz Benkhalifa

doi:doi:10.11648/j.eco.20150401.12

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Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data

Abdelaziz Benkhalifa

Published in Economics (Volume 4, Issue 1)

Received: 21 January 2015 Accepted: 29 January 2015 Published: 3 February 2015

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Abstract

This paper measures the value of a statistical life for union and nonunion workers. To avoid the problem of a selectivity biais arising if richer people choose safer jobs, we consider risk as an endogenous variable. The endogeneity of job risk implies that ordinary least squares estimates of the wage equation may be biased and this should be corrected. Accordingly, we use instrumental variables techniques. Using original data from “la Caisse nationale de la sécurité sociale”, we found that organizing workers in union generates a value of statistical life at least two times higher than for non-union workers (344,595.2 dinars for non-union and 985,459.7 dinars for union workers). In addition, we found evidence of wage differentials for hazardous work. However, these values of statistical life are much lower than those estimated in developed countries. This study could provide useful results for policymakers to reduce the risk of death in Tunisia.

Published in	Economics (Volume 4, Issue 1)
DOI	10.11648/j.eco.20150401.12
Page(s)	11-17
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Compensating Wage Differentials, Unions, Value of Life

References

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[4]	Cropper, Maureen L. and Freeman, A. Myrick (1991), Environmental health effects, In John B. Braden, and Charles D. Kolstad (Eds.), Measuring the Demand for Environmental Quality, 165–221, North-Holland, New York.
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[7]	Fairres, D. (1989), Compensating Wage Differentials and Unobserved Productivity, Industrial Relations, 28, 356-72.
[8]	Gegax, D., S. Gerking, and W. Schulz (1991), Perceived Risk and the Marginal Value of Safety, Review of Economics and Statistics, 73, 589-96.
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[10]	Hammit, J. K. and J. T. Liu. (2003), Effects of disease type and latency on the value of mortality risk, Working Paper 10012, National Bureau of Economic Research, Cambridge.
[11]	Madheswaran, S. (2007), Measuring the value of statistical life: Estimating compensating wage differentials among workers in India, Social Indicators Research, 84, 83-96.
[12]	Moore, M., and W. Kip Viscusi (1990), Compensation Mechanisms for Job Risks: Wages, Workers Compensation and Product Liability, Princeton University Press.
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[18]	Viscusi W. Kip (1979), Employment hazards: An investigation of market performance, Cambridge University Press.
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Abdelaziz Benkhalifa. (2015). Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data. Economics, 4(1), 11-17. https://doi.org/10.11648/j.eco.20150401.12

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Abdelaziz Benkhalifa. Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data. Economics. 2015, 4(1), 11-17. doi: 10.11648/j.eco.20150401.12

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Abdelaziz Benkhalifa. Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data. Economics. 2015;4(1):11-17. doi: 10.11648/j.eco.20150401.12

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@article{10.11648/j.eco.20150401.12,
  author = {Abdelaziz Benkhalifa},
  title = {Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data},
  journal = {Economics},
  volume = {4},
  number = {1},
  pages = {11-17},
  doi = {10.11648/j.eco.20150401.12},
  url = {https://doi.org/10.11648/j.eco.20150401.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20150401.12},
  abstract = {This paper measures the value of a statistical life for union and nonunion workers. To avoid the problem of a selectivity biais arising if richer people choose safer jobs, we consider risk as an endogenous variable. The endogeneity of job risk implies that ordinary least squares estimates of the wage equation may be biased and this should be corrected. Accordingly, we use instrumental variables techniques. Using original data from “la Caisse nationale de la sécurité sociale”, we found that organizing workers in union generates a value of statistical life at least two times higher than for non-union workers (344,595.2 dinars for non-union and 985,459.7 dinars for union workers). In addition, we found evidence of wage differentials for hazardous work. However, these values of statistical life are much lower than those estimated in developed countries. This study could provide useful results for policymakers to reduce the risk of death in Tunisia.},
 year = {2015}
}

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TY  - JOUR
T1  - Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data
AU  - Abdelaziz Benkhalifa
Y1  - 2015/02/03
PY  - 2015
N1  - https://doi.org/10.11648/j.eco.20150401.12
DO  - 10.11648/j.eco.20150401.12
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PB  - Science Publishing Group
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AB  - This paper measures the value of a statistical life for union and nonunion workers. To avoid the problem of a selectivity biais arising if richer people choose safer jobs, we consider risk as an endogenous variable. The endogeneity of job risk implies that ordinary least squares estimates of the wage equation may be biased and this should be corrected. Accordingly, we use instrumental variables techniques. Using original data from “la Caisse nationale de la sécurité sociale”, we found that organizing workers in union generates a value of statistical life at least two times higher than for non-union workers (344,595.2 dinars for non-union and 985,459.7 dinars for union workers). In addition, we found evidence of wage differentials for hazardous work. However, these values of statistical life are much lower than those estimated in developed countries. This study could provide useful results for policymakers to reduce the risk of death in Tunisia.
VL  - 4
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Author Information

Abdelaziz Benkhalifa

Department of Economics, Ecole Supérieure des Sciences Economiques et Commerciales de Tunis, University of Tunisia, Tunis, Tunisia; The Qualitative Analysis Research Unit Applied to the Economy and Management (UAQUAP), Higher Institute of Management of Tunis, Tunis, Tunisia

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Abdelaziz Benkhalifa. (2015). Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data. Economics, 4(1), 11-17. https://doi.org/10.11648/j.eco.20150401.12

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ACS Style

Abdelaziz Benkhalifa. Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data. Economics. 2015, 4(1), 11-17. doi: 10.11648/j.eco.20150401.12

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AMA Style

Abdelaziz Benkhalifa. Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data. Economics. 2015;4(1):11-17. doi: 10.11648/j.eco.20150401.12

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@article{10.11648/j.eco.20150401.12,
  author = {Abdelaziz Benkhalifa},
  title = {Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data},
  journal = {Economics},
  volume = {4},
  number = {1},
  pages = {11-17},
  doi = {10.11648/j.eco.20150401.12},
  url = {https://doi.org/10.11648/j.eco.20150401.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20150401.12},
  abstract = {This paper measures the value of a statistical life for union and nonunion workers. To avoid the problem of a selectivity biais arising if richer people choose safer jobs, we consider risk as an endogenous variable. The endogeneity of job risk implies that ordinary least squares estimates of the wage equation may be biased and this should be corrected. Accordingly, we use instrumental variables techniques. Using original data from “la Caisse nationale de la sécurité sociale”, we found that organizing workers in union generates a value of statistical life at least two times higher than for non-union workers (344,595.2 dinars for non-union and 985,459.7 dinars for union workers). In addition, we found evidence of wage differentials for hazardous work. However, these values of statistical life are much lower than those estimated in developed countries. This study could provide useful results for policymakers to reduce the risk of death in Tunisia.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Does the Value of a Statistical Life Vary with Union: Evidence from Tunisian Data
AU  - Abdelaziz Benkhalifa
Y1  - 2015/02/03
PY  - 2015
N1  - https://doi.org/10.11648/j.eco.20150401.12
DO  - 10.11648/j.eco.20150401.12
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 11
EP  - 17
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20150401.12
AB  - This paper measures the value of a statistical life for union and nonunion workers. To avoid the problem of a selectivity biais arising if richer people choose safer jobs, we consider risk as an endogenous variable. The endogeneity of job risk implies that ordinary least squares estimates of the wage equation may be biased and this should be corrected. Accordingly, we use instrumental variables techniques. Using original data from “la Caisse nationale de la sécurité sociale”, we found that organizing workers in union generates a value of statistical life at least two times higher than for non-union workers (344,595.2 dinars for non-union and 985,459.7 dinars for union workers). In addition, we found evidence of wage differentials for hazardous work. However, these values of statistical life are much lower than those estimated in developed countries. This study could provide useful results for policymakers to reduce the risk of death in Tunisia.
VL  - 4
IS  - 1
ER  -

Copy | Download