Keith Vodden Dr. Douglas Smith - Transports Canada

Analysis and Estimation of the Social Cost of Motor Vehicle Collisions in Ontario
g
y
r
= rate of increase of labour productivity (variable, set at 1% to
yield the summary data presented below)
= age at which the individual was injured
= is the real discount rate (variable, set at 4% to yield the
summary data presented below)
The Excel spreadsheet is used to apply the above calculations to compute
discounted lifetime earnings and household production losses for deaths and permanently
disabling injuries. (Note: household production losses are calculated using their
relationships to earnings in 1993, as described below under “Input Data”; also, the rate of
increase of labour productivity does not apply to the calculation of lost household
production.)
C. SHORT-TERM PRODUCTIVITY LOSS
Short-term productivity loss includes both wage loss and household production
loss from injuries that did not lead to death or permanent disability. Average daily
earnings plus fringe benefits for workers and non-workers is estimated as hours worked
per day worked times hourly wage times labour force participation times participants
employed times 1.341 (to add fringe benefits, as above).
Household production was computed from the 1993 data in a manner parallel to
that described above for the lifetime calculations.
D. INPUT DATA
The input data used by the spreadsheet consist of:
• Counts of fatalities and of major, minor, and minimal injuries, by sex and
single years of age, for 2004.
• Annual employment income per person in Ontario, calculated as P * L * E * Y
where:
P = the population of Ontario, tabulated at zero years, 1-4, 5-9, fiveyear
groups to 84, and 85 and over, from Labour Force Historical
Review, 2005, Statistics Canada 71F0004XCB.
L = the Ontario percentage labour force participation, from Labour
Force Historical Review, 2005, Statistics Canada 71F0004XCB.
170 TNS Canadian Facts, Social and Policy Research