Economic cost of occupational accidents: Evidence from a small island economy

Abstract

Though a number of occupational accidents have occurred amongst the working population in Mauritius, no study has been carried out to measure the costs associated with such accidents to the best of our knowledge. This study bridges this gap by measuring the economic costs of occupational accidents by using both quantitative and qualitative approaches. The results show that occupational accidents result in costs amounting to nearly Rs. 168 mn of which a major part is accounted for, by loss in productivity. Alongside the highest rate of accidents took place within small enterprises and younger workers are the one taking higher risks mainly due to lack of knowledge and risk awareness. The findings also reveal that only 4% employers believe that investment in safety and health is important for maintaining good business partly because most of the costs are borne by the state. Such a situation therefore requires the need for awareness on practical health and safety systems and procedures among both employees and employers with a view to prevent accident and injuries.