Economic Costs of Occupational Injuries in the Manufacturing Sector of Addis Ababa, Ethiopia

Birhane, Hailye (2016) Economic Costs of Occupational Injuries in the Manufacturing Sector of Addis Ababa, Ethiopia. Masters thesis, Addis Ababa University.

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Abstract

Introduction: The magnitude of economic loss resulted from occupational injuries for all economic agents are known globally and in developed countries. It is estimated to absorb 4-6% of the national income (GDP) and results thousands of death and millions of human suffering. However, this is not yet investigated in Ethiopia. Therefore, the result of this study -helps to contribute in filling this gap. Objective: To estimate the economic costs of occupational injuries in the manufacturing sector of Addis Ababa, Ethiopia for 2014/15, using company perspective. Methods: The cost input data was collected from injury compensation claim record of 13(76.5%) insurance companies head office, Addis Ababa city government BoLSA offices injury record reviews and through a survey of 398 injured cases and their companies (establishments). The cost input data were used to estimate the following cost components: direct cost (compensation and medical) and indirect costs (absenteeism and presenteeism), using friction cost estimation method. Findings: The estimated annual number of injured cases were 28,221; among them 15,166(53.8%) workers were temporarily disabled, 12,368 (43.8%) workers were partially disabled, 629(2.2%) workers were totally disabled and 58 (0.2%) workers were died. Additionally, the estimated total lost workday were 128,431.5 days; an average of 7.5 workday per injury. The estimated economic cost of occupational injuries in the manufacturing sector of Addis Ababa, Ethiopia during 2014/15 varies from Birr 335,810,072.5 (15,990,955.8 US$) up to 1,060,447,498 Birr (50,497,499.9 US$). This is because of the indirect (uninsured) cost varies from 70,698,198 Birr to 795,335,623.5 Birr. Therefore, the estimated average total economic cost was 698,128,785.3 Birr (33,244,228 US$); the indirect cost 433,016,911 Birr (62%) and direct cost 265,111,874.5 Birr (38%). Furthermore, these direct and indirect costs of injury absorb 3% up to 5.7% or an average of 4.35% of the operating cost per employer annually. Conclusion: The economic loss as a result of injury was very substantial. Strengthening OSH management system at all level and creating a safe and healthy working condition would reduce substantial amount of expenditure and human suffering as well as save 798,774 Birr (38,037 US$) costs-per-year-per-employer.

Item Type: Thesis (Masters)
Uncontrolled Keywords: Economic costs of injury, direct and indirect costs, manufacturing sector, disability
Subjects: R Medicine > RA Public aspects of medicine > RA0421 Public health. Hygiene. Preventive Medicine
Divisions: Africana
Depositing User: Emmanuel Ndorimana
Date Deposited: 02 Jul 2018 10:24
Last Modified: 02 Jul 2018 10:24
URI: http://thesisbank.jhia.ac.ke/id/eprint/6392

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