The demand for accident cost information has increased in recenttimes as safety professionals seek to compare accident costs with other societal problems. Addressing one component of accident costs, this study proposes a procedure for estimating the cost of lost wages due to accidents with separate estimates generated for motor vehicle, work, home, and public accidents, as well as the overall total. Estimates were developed from data that can be updated annually so that cost estimates can be kept current. Deaths, permanent disabilities, and temporary disabilities of workers were included as part of the framework. In addition, the value of homemaker services lost due to accidents was estimated. The procedure utilized the "human capital" approach, whereby the discounted present value of lost future earnings is taken as the appropriate measure of the productivity loss to society due to accidents. Other cost estimating approaches were discussed. Using this procedure, it was estimated that accidental injuries resulted in $31.1 Billion in wage losses in 1985, about 1.6% Ofall wages and salaries paid in that year.
Abstract