Do the Near-Elderly Value Mortality Risks Differently?
Wage hedonic models are estimated with the Health and Retirement Study to measure the risk-wage tradeoffs (value of statistical lives) for older workers. The analysis explicitly allows for multiple employment states, including retirement, using a multinomial selection model. The results suggest that the oldest and most risk-averse workers require significantly higher, not lower, compensation to accept increases in job-related fatality risks
© 2004 President and Fellows of Harvard College and the Massachusetts Institute of Technology
Smith, V. Kerry, Mary F. Evans, Hyun Kim, and Donald H. Taylor, Jr., Do the “Near” Elderly Value Mortality Risks Differently?, Review of Economics and Statistics 86(1): 423-429, 2004.