Costs of occupational accidents and diseases in Norway

Using a market pricing model, the costs of occupational accidents and diseases in Norway are estimated to be approximately 40 billion (1990) NOK per year, which is around 6% of GDP. These costs are carried by firms (10%), the public sector (80%) and the individuals (10%). The low share of costs carried by firms may suggest that management safety motivation is low. The validity of the market pricing model for safety management motivation can, however, be questioned. Based on the results from this study, the Government has proposed a reform on the financing of sick payments, which would result in a higher cost to firms and a lower cost to the public sector, if it is approved by the Parliament.