Cited by 278Sleep and related disordersSleep and Work-Related FatigueHealth Systems, Economic Evaluations, Quality of Life

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The economic cost of inadequate sleep

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Hillman, David, Mitchell, Scott, Streatfeild, Jared, Burns, Chloe, Bruck, Dorothy, Pezzullo, Lynne·2018·Sleep

DOI 10.1093/sleep/zsy083

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Abstract

Study Objectives: To estimate the economic cost (financial and nonfinancial) of inadequate sleep in Australia for the 2016-2017 financial year and relate this to likely costs in similar economies. Methods: Analysis was undertaken using prevalence, financial, and nonfinancial cost data derived from national surveys and databases. Costs considered included the following: (1) financial costs associated with health care, informal care provided outside healthcare sector, productivity losses, nonmedical work and vehicle accident costs, deadweight loss through inefficiencies relating to lost taxation revenue and welfare payments; and (2) nonfinancial costs of loss of well-being. They were expressed in US dollars ($). Results: The estimated overall cost of inadequate sleep in Australia in 2016-2017 (population: 24.8 million) was $45.21 billion. The financial cost component was $17.88 billion, comprised of as follows: direct health costs of $160 million for sleep disorders and $1.08 billion for associated conditions; productivity losses of $12.19 billion ($5.22 billion reduced employment, $0.61 billion premature death, $1.73 billion absenteeism, and $4.63 billion presenteeism); nonmedical accident costs of $2.48 billion; informal care costs of $0.41 billion; and deadweight loss of $1.56 billion. The nonfinancial cost of reduced well-being was $27.33 billion. Conclusions: The financial and nonfinancial costs associated with inadequate sleep are substantial. The estimated total financial cost of $17.88 billion represents 1.55 per cent of Australian gross domestic product. The estimated nonfinancial cost of $27.33 billion represents 4.6 per cent of the total Australian burden of disease for the year. These costs warrant substantial investment in preventive health measures to address the issue through education and regulation.

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Authors: Hillman, D., Mitchell, S., Streatfeild, J., Burns, C., Bruck, D., & Pezzullo, L.
Affiliations: The University of Western Australia (AU)
Health Economics and Social Policy Team, Deloitte Access Economics, Canberra, Australia
Victoria University (AU)
Corresponding author: Hillman, David
ORCID: Hillman, David
Burns, Chloe
Pezzullo, Lynne
Venue: Sleep
Publisher: Oxford University Press (OUP)
Published: 2018-06-04
Volume: 41
Issue: 8
ISSN: 0161-8105 (ISSN-L)
1550-9109
DOI: 10.1093/sleep/zsy083
OpenAlex: W2806077392
Cited by: 278
References: 70
Citations by year: 2026: 17 · 2025: 34 · 2024: 38 · 2023: 46 · 2022: 37 · 2021: 36 · 2020: 35 · 2019: 24 · 2018: 11
FWCI: 34.69
Type: journal article
Language: en
Open access: green
vuir.vu.edu.au
Licence: academic.oup.com/journals/pages/open_access/funder_policies/chorus/standard_publication_model (vor)
Locations: SLEEP (publishedVersion)
PubMed (publishedVersion)
Victoria University Research Repository (Victoria University) (submittedVersion)
UWA Profiles and Research Repository (UWA) (submittedVersion)
Funders: Sleep Health Foundation
Topics: Social Sciences › Psychology › Experimental and Cognitive Psychology › Sleep and related disorders
Social Sciences › Psychology › Experimental and Cognitive Psychology › Sleep and Work-Related Fatigue
Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Health Systems, Economic Evaluations, Quality of Life
Keywords: insufficient sleep, sleep disorders, productivity loss, presenteeism, absenteeism, informal care, premature mortality, deadweight loss, disease burden, Australia
MeSH terms: Absenteeism, Accidents, Australia, Efficiency, Health Expenditures, Humans, Sleep Initiation and Maintenance Disorders, Male, Public Health, Sleep, Prevalence, Health Care Costs, Cost of Illness

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The economic cost of inadequate sleep

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