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The impact of occupational injury reduction on the U.S. economy
Eduard Zaloshnja1, Ted R Miller, Geetha Waehrer
1Pacific Institute for Research & Evaluation, Calverton, Maryland 20705, USA. zaloshnja@pire.org
Background:
Preventing occupational injuries reduces labor and fringe benefit costs to employers. The related savings filter through the economy, impacting its performance. This study is a first attempt to measure the impact of occupational injury reduction on national economic output, gross domestic product, national income, and employment by using an input-output model of the U.S. economy.
Methods:
Occupational injury costs by industry for 1993 were used as a baseline for an input-output model, and the impact of the 38% injury rate reduction between 1993 and 2002 was measured. All computations are in year 2000 dollars.
Results:
Declining occupational injury between 1993 and 2002 increased employment by an estimated 550,000 jobs. The increase in gross domestic product (GDP) was 25.5 billion US dollars or 9% of the average annual GDP increase from 1993 to 2002.
Conclusions:
These estimates represent the benefits of injury rate reduction but ignore associated prevention costs.
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