Does the value of human life in Russia increase with age and higher levels of education?

Author:

Zubova Ekaterina A.

Abstract

Estimates of the value of life, reflecting society’s preferences regarding the choice between safety and money, are key indicators for state management in areas such as healthcare, transport, demographic policy, and environmental protection. This article is a logical continuation of the previous research presenting the initial estimates of the value of life in Russia based on analysis of the revealed preferences about employment in industries associated with high fatality risks. In addition to the previous results, this study provides a new theoretical model explaining the logic of choosing employment considering fatality risks and offers estimates of the value of life across educational and age groups. The empirical part of the paper is based on the RLMS HSE data for the period from 2010 to 2020; the author uses panel regression with random effects. The analysis shows that the average value of life in Russia is 287 million rubles, varying from 241 to 450 million rubles depending on levels of education achieved, and considering age value of life ranges from 329 to 349 million rubles (in those groups for which estimates are significant). Possible explanations for this variability are related to the human capital factor, which changes with age and education level. At the same time, the impact of human capital on the value of life can be both positive and negative.

Publisher

Pensoft Publishers

Subject

General Medicine

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