Employment pathways of full and partial disability pensioners in Finland: a sequence analysis

Low employment rates among people with reduced work capacity pose a significant challenge for social and labor market policies in many countries. This study aims to identify employment pathways of full and partial disability retirees in Finland. Register data were collected on 17,443 Finns aged 20–62 who received an earnings-related full or partial disability pension in 2018. Participants were observed for 60 months from the start of their disability pension. Sequence analysis combined with clustering was used to identify typical employment pathways while receiving a disability pension. Furthermore, the different pathways were described according to individual-level factors. Around 25% of the study population belonged to clusters where people received a partial disability pension and worked throughout their pension period. Only a small proportion received a partial disability pension and did not work. Over 60% belonged to clusters where people received a full disability pension and did not work, or worked for a brief initial period. Only very few full disability pensioners continued to work for more than 12 months. Many individual-level factors were linked with different pathways of work. Disability pension recipients exhibited distinct employment pathways that varied by pension type and individual-level factors. The findings highlight substantial differences in labor market participation potential, emphasizing the need for tailored policy approaches.