The economic value of fatal and non-fatal occupational risks in Mexico City using actuarial- and perceived-risk estimates

Compensating wage differentials are used to estimate marginal rates of substitution between income and both fatal and non-fatal occupational-injury risks in the Mexico City metropolitan area. Data are obtained by in-person survey of almost 600 workers and include workers' perceived risks of fatal and non-fatal occupational injury supplemented by actuarial-risk estimates from government statistics. Results using both actuarial- and perceived-risk estimates are reasonably consistent. Estimates of the value per statistical life are between US$235 000 and US$325 000 and estimates of the value per statistical non-fatal injury are between US$3500 and US$11 000 (2002 US dollars). These values are much smaller than corresponding estimates for higher-income countries but are compatible with the small number of prior estimates for lower-income countries. Copyright © 2006 John Wiley & Sons, Ltd.