Browsing by Author "Birhane, Hailye"

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    Economic Costs of Occupational Injuries in the Manufacturing Sector of Addis Ababa, Ethiopia
    (Addis Abeba University, 2016-06) Birhane, Hailye; H/Mariam, Damen (PhD)
    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. Key words: Economic costs of injury, direct and indirect costs, manufacturing sector, disability.