Most studies using the compensating differential approach have estimated the value of a life to be between $3 million and $7 million.

Question

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The compensating differential approach, which estimates the monetary amount workers require to accept jobs with higher risks of death or injury, often finds the value of a statistical life (VSL) to be in the range of $3 million to $7 million. This range is commonly cited in economic literature and policy analyses to evaluate the cost-effectiveness of health and safety regulations.

Most Studies Using the Compensating Differential Approach Have Estimated the Value