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Valuing the economic consequences of work injury and illness: a comparison of methods and findings.
Am J Ind Med 2001 Oct; 40(4):418-437
Background: Workplace injuries and fatalities in the US create significant economic costs to society. Although economic costs should measure the opportunity cost to society arising from injuries and fatalities, estimating them often proves difficult as a practical matter. This leads to a range of estimates for valuing these costs. Methods: This paper compares methods of economic valuation, focusing in particular on how different methods diverge to varying degrees from measuring the "true'' economic costs of injuries and illnesses. In so doing, it surveys the literature that has arisen in the past 25 years to measure different aspects of economic consequences. Results: Estimates of the costs of injuries and fatalities tend to understate the true economic costs from a social welfare perspective, particularly in how they account for occupational fatalities and losses arising from work disabilities. Conclusions: Although data availability often makes estimation of social welfare costs difficult, researchers should attempt to more fully integrate such approaches into estimation procedures and interpretation of their results.
Injuries; Diseases; Employee-health; Sociological-factors; Mortality-data; Disabled-workers; Lost-work-days; Lifespan; Author Keywords: occupational injury and illness; economic valuation; benefit/cost analysis; value of human life; social welfare costs
David Weil, Visiting Fellow, Taubman Center, T-310, John F. Kennedy School of Government, Harvard University, Cambridge, MA 02138
Issue of Publication
American Journal of Industrial Medicine
Page last reviewed: October 22, 2021
Content source: National Institute for Occupational Safety and Health Education and Information Division