NIOSH Fatal Occupational Injury Cost Fact Sheet: Transportation, Warehousing, and Utilities (NAICS 48, 49, 22)

Related Publications:
Air Transportation | Couriers/Messengers | Transit/Ground Transportation | Truck Transportation | Utilities | Warehousing/Storage | Water Transportation

Number, Rate, and Costs of Fatal Occupational Injuries in the U.S. Transportation, Warehousing, and Utilities Industry Sector by Selected Characteristics, 2003–2006.

NOTE: Asterisks denote a summary level code not assigned to individual cases.

¹Numbers are not reported for “unknown”, “not classified”, “unspecified”, “not reported” or “other” categories.

²This category includes all other races, such as American Indian and Asian, as well as unknown or missing races.

Fatal Occupational Injury Cost Model

Theoretical Basis of Cost Estimation

The cost to society of a workplace fatality was estimated using the cost-of-illness approach, which combines direct and indirect costs to yield an overall cost of an occupational fatal injury. For these calculations, only medical expenses were used to estimate the direct cost associated with the fatality. The indirect cost was derived by calculating the present value of future earnings summed from the year of death until the decedent would have reached age 67, accounting for the probability of survival were it not for the premature death. (For more information, see Biddle, E [2004]. Economic Cost of Fatal Occupational Injuries in the United States, 1980–1997. Contemporary Economic Policy 22(3):370–381 or Biddle, E [2009]. The Cost of Fatal Injuries to Civilian Workers in the US, 1992-2001and Biddle E and Keane P [2011]. The Economic Burden of Occupational Injuries to Civilian Workers in the United States, 1992-2002. Cincinnati, OH: U.S. Department of Health and Human Services, Public Health Service, Centers for Disease Control and Prevention, National Institute for Occupational Safety and Health, DHHS.)

Mathematical Representation of Indirect Costs

where:

Mathematical Representation of Indirect Costs

Variable	Definition
PVF	= present discounted value of loss per person due to an individual occupational fatal injury
Py,q,s (n)	= probability that a person of age y, race q, and sex s will survive to age n
q	= race of the individual
s	= sex of the individual
n	= age if the individual had survived
Ys, j(n)	= median annual compensation of an employed person of sex s, specific occupation j, and age n (includes median annual earnings, benefits, and wage growth adjustments)
j	= specific occupation of individual at death
	= mean annual imputed value of household production (h) of a person of sex s and age n
g	= earnings growth rate attributable to overall productivity
y	= age of the individual at death
r	= real discount rate (3%)

Data Sources

Fatality data: Bureau of Labor Statistics (BLS) Census of Fatal Occupational Injuries (CFOI)external icon. This research was conducted with restricted access to Bureau of Labor Statistics (BLS) data. These data exclude military personnel, decedents with unknown age or sex, and fatalities occurring in New York City. The views expressed here do not necessarily reflect the views of the BLS.

Probability of survival: National Center for Health Statistics, Division of Vital Statistics.

Median annual earnings: BLS Occupational Employment Statistics Surveyexternal icon. Wage data are based on the occupation of the decedent and the year and State of death adjusted by the Gross Domestic Product (GDP) Deflatorexternal icon to the base year of dollar. The wage growth adjustment, which is the rate of change in wages between age groups, was calculated by NIOSH using BLS Current Population Survey data.

Benefits: BLS Employer Cost for Employee Benefitsexternal icon. Benefits data are based on the year of death adjusted by the GDP Deflator.

Mean annual home production: Expectancy Dataexternal icon. Data are derived through a time diary study sponsored by the U.S. Environmental Protection Agency and conducted by the University of Maryland.

Earnings growth rate: BLS Employment Compensation Index (ECI)external icon.

Medical costs: National Council on Compensation Insuranceexternal icon. This is a single 4-year average medical cost.

Employment estimates for rate calculations: BLS Current Population Surveyexternal icon.

Fatality Rate Calculations

Fatality rates were calculated by NIOSH and may differ from previously published BLS CFOI rates. Fatality rates were calculated as deaths per 100,000 workers. Fatality rates for sex, race, age group, and occupation were calculated using employment estimates by the individual characteristic within the specific industry. Employment estimates for the specific industry were used to generate rates for event and source.

Classification Systems

NIOSH Fatal Occupational Injury Cost Fact Sheet: Transportation, Warehousing, and Utilities (NAICS 48, 49, 22) pdf icon[PDF – 371 KB]