The Military VSL

Abstract Our research reviews theory and evidence in the economics literature to provide a standard value of a statistical life (VSL) applicable to the Department of Defense (DOD). We follow Viscusi (Best estimate selection bias in the value of a statistical life, Journal of Benefit-Cost Analysis , 9(2), 205–246, 2018a) by conducting a meta-analysis of 1,025 VSL estimates from 68 different labor market studies and find a best-set average VSL estimate of $11.8 million (US$2021) across all studies. For DOD analysts and practitioners, we advocate using our best-set VSL estimate for the vast majority of benefit–cost analyses (BCAs) within the DOD. In addition to providing a VSL benchmark to use in DOD BCAs, we disaggregate casualty types and provide a range of VSL estimates to use in sensitivity analyses. Employing restricted data from the DOD on over 6,700 US military fatalities in Afghanistan and Iraq from 2001 to 2021, we show that (1) fatalities are highly concentrated among young, White and enlisted males, and that (2) the Army and Marines account for the vast majority of the fatality totals (73 and 22%, respectively), in contrast to the low number of fatalities (<5%) in the Air Force and Navy. The monetized cost of US military fatalities in Afghanistan and Iraq would involve individual VSL levels that range from $3.2 to $27.6 million per statistical life (US$2021), after applying standard pay grade and income adjustments.