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In this paper, we estimate transition probabilities between different health states that lead to the estimation of future occupation times in the work ability states conditional on an individual's initial state and age. We analyse data obtained from three longitudinal surveys on active Finnish municipal workers. We found that men permanently leave the work force due to disability or death earlier than women in all age groups, regardless of whether they commenced in a better or worse work ability state. Women tend to retire on old-age or similar pension before men, especially those women with an initially fair or poor capacity for work. The data suggest that the work ability of Finnish aging workers appears to deteriorate prematurely and that individuals leave employment before the statutory retirement age. Thus the work ability of employed persons should be followed already at sufficiently early ages when it is still possible to intervene in the process.
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