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Title of Thesis

The Value Of Life: Evidence From Labor Markets In Pakistan

Author(s)

Muhammad Rafiq

Institute/University/Department Details
Institute Of Development Studies, Faculty Of Rural Social Scienceskhyber / Kpk Agriculture University, Peshawar
Session
2011
Subject
Economics
Number of Pages
131
Keywords (Extracted from title, table of contents and abstract of thesis)
Alternative, Markets, Hypothesis, Value, Variable, Labor, Evidence, Model, Utilize, Statistical, Risk, Life

Abstract
The present study was designed with the objective of estimating the Value of Life and Limb based on Willingness to Pay (WTP) in Pakistan.This is a pioneering work and so far no one has estimated Value of Statistical Life and Value of Statistical Injury based on either hedonic models or contingent valuation method for the country.Present study has employed the hedonic wage model to estimate the Value of Statistical Life and Limb for Pakistan based on actual and perceived risks.The present method has focused on evaluating the compensating wage differential among the blue-collar industrial workers in Lahore.The respondents were workers of eighteen years of age with at least one year of work experience in Lahore.The survey results are based on the interviews of 680 respondents.The point estimates of Value of Statistical Life in Pakistanbased on four regression equations range from a minimum of 11.39 million PKR to66.66 million PKR.The 95% confidence interval for the values are (1.62, 16.2 million PKR) and (9.5, 95.23 million PKR) respectively.The dollars values ofVSL lie between a minimum of $132,512 to a maximum of $775,193.The variations in the results are due to the use of different risk measures, that is, actual and professed or perceived risk measures in alternative regression equations The Study could not provide any Value of Statistical Injury because the non-fatal risk variable were not statistically significant.Nevertheless, the first hypothesis that industrial workers of the formal sector are rational and they do consider risk while accepting job is validated. The regression models are fully robust and do not suffer from any major econometric problem.The second hypothesis about WTP being positively related to income was authenticated with second estimation.To conclude the present research work, the study confirms that the compensating- wage differential does exist in the formal private sector in Pakistan and the market does compensate the workers for taking risk(s.Theestimates for VSL provided in this study are useful in evaluating public sector projects especially the safety projects.This shall help the authorities to achieve the twin objectives of economic policies, that is, efficiency and social welfare.Beside this, government concerned departments are also urged to make use of these values for evaluating the true cost of the ongoing war on terror in the wake of loss of many precious lives. Moreover, insurance companies are also encouraged to utilize the results of the study for settling the claim of Life and Limb.

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591 KB
S. No. Chapter Title of the Chapters Page Size (KB)
1 0 CONTENTS

 

vi
103 KB
2

1

INTRODUCTION

1.1 Objectives
1.2 Hypotheses
1.3 Scheme of the study

1
104 KB
3 2 REVIEW OF LITERATURE

2.1 Contingent Valuation
2.2 Revealed Preference Method
2.3 The VSL based on United States hedonic studies
2.4 VSL evaluated in other developed countries
2.5 The estimation of VSL in the developing countries
2.6 Other methodological issues pertaining to the VSL based on Hedonic wage model
2.7 The use of statistical life in Public Policy Decisions
2.8 Syntheses of Review of Literature

9
225 KB
4 3 REVIEW OF THE OCCUPATIONAL SAFETY AND HEALTH IN MANUFACTURING SECTOR OF PAKISTAN

3.1 Sectoral Non- Fatal Comparison
3.2 Types of Injuries received
3.3 Types of Treatment Received

30
112 KB
5 4 RESEARCH METHODOLGY

4.1 Theoretical ideas
4.2 The effect of wealth and the decision to accept the job
4.3 Description of the Study Site
4.4 Sampling and Data Collection Method
4.5 Variables to be measured
4.6 Methods for Data Analysis
4.7 Computation of VSL
4.8 Econometric Problems

38
282 KB
6 5 RESULTS AND DISCUSSION

5.1 Data used in regression analysis
5.2 Estimation of the Hedonic Wage Equations
5.3 Calculating VSL for Pakistan based on Prediction equation
5.4 Estimation of the determinants of risk

66
176 KB
7 6 SUMMARY, CONCLUSION AND RECOMMENDATIONS

 

90
105 KB
8

7

REFERENCES AND APPENDICES

 

100
163 KB