Value of statistical life in Indian labor market
Student name: Ms Priyanka Sarna
Guide: Dr Sukanya Das
Year of completion: 2017
Host Organisation: Institute of Financial Management and Research
Supervisor (Host Organisation): Dr K.R. Shanmugam
Abstract: Government as a social planner execute various social sector projects including infrastructure, education, health, environment, investment projects, etc. The government is always expected to invest in projects which improve the well-being of the society. For justifying of investment, the social cost-benefit analysis needs to be done which account for both private and social benefits of the project.
The basic objective of the study is to calculate implicit marginal willingness to pay for a marginal reduction in the probability of risk of death and health risk in India to facilitate better cost- benefit analysis of social sector projects related to health, transportation, and environment. Using the hedonic wage theory, this study has tried to estimate value of a statistical life in Indian labour market for all the occupations and for only blue collar job workers as well in order to provide monetary value of life to facilitate better cost- benefit analysis of social sector projects related to health, transport and environment. This study has found that the value of a statistical life in Indian labour market for all occupations lies between INR. 41.79 million to INR 73.27 million and for blue collar job workers it is betrween Rs. 41.79 million to Rs. 49.16 million and blue-collar job workers implicitly value their lives less as compare to white-collar job workers.
Key words: VSL, India, manufacturing sector, blue collar workers
