This dissertation provides an analysis of economic difficulties during the transition into adulthood in Finland by means of four peer-reviewed research articles. More specifically, it identifies and examines prevalence and patterns of economic difficulties among young adults. It also studies how different family and individual factors are associated with the trajectories and transitions related to economic difficulties. 

The transition into adulthood is an important and interesting phase of life for many reasons. Young adulthood is a demographically dense period in which several life-course events are experienced, such as school-to-work transition, parenthood, partnership formation, and the leaving of the parental home. In addition to high rates of income poverty and unemployment among young adults, the disadvantages faced during young adulthood may lead to long-term marginalization or social exclusion. Despite the importance of this phase of life is recognised more often than before, research on economic difficulties among young adults remains scarce. 

Part of the literature review of this dissertation is devoted to life course research, as well as that on the dynamics of poverty and economic disadvantage. As such, this study is in line with recent arguments advancing that young adults should be studied using a combination of the life-course perspective and longitudinal analysis. The life course perspective provides tools to analyse the lives of individuals by acknowledging that they are affected various factors, including the individual’s earlier experiences, agency, other significant individuals (such as parents or friends), as well as historical time and place. A longitudinal perspective helps illustrate which kinds of factors lead into or out of economic difficulties and how long economic difficulties are experienced. 

This research is based on Finnish register data. Data from different population register data sources were combined by Statistics Finland. The data is based on a sample of individuals. The cohorts and length of follow-up vary between the articles. Economic difficulties are studied using different kinds of measures related to poverty and economic disadvantage: namely, income poverty, social assistance receipt, and the income-based measure for labour market attachment. Thus, this study has a multidimensional approach to studying economic difficulties among young adults. To analyse economic difficulties during the transition into adulthood, this dissertation employs a versatile set of statistical methods that are typical in life course research—including event-history models, panel regression models, latent class growth analysis, and sequence analysis. 

As noted, this dissertation is comprised of four research articles. The first article examines how demographic and employment events are associated with income poverty entries and exits after individuals have left the parental home. A special attention is given to demographic events, i.e. someone leaving or entering the household. Living in a single-adult household and having one’s own children increases the likelihood of experiencing poverty, especially among women. This article also illustrates the factors associated with returning to the parental home. The second article explores how social background and critical life-course factors are associated with the number of months of social assistance per year. Both social background (parental social assistance receipt, parental unemployment, and low parental education) and critical life-course factors (unemployment, living in a single-adult household, the birth of the first child, and having a low education) are important predictors for the annual number of social assistance months. The article also elaborates on the interplay between these factors. The third article analyses social assistance trajectories and their precursors. This article identifies six trajectories based on the annual number of social assistance months: 1) no receipt, 2) transitory, 3) slow exit, 4) occasional, 5) increase, and 6) dependency. Having a low education, parental social assistance receipt, and leaving the parental home at a young age were found to be especially important predictors of membership in trajectories characterised by social assistance receipt. The fourth article focusses on sequences in the school-to-work transition in Finland, Norway, and Sweden. 

According to the results, these three countries share the same general types of school-to-work trajectories. Five trajectories of school-to-work transition are identified: 1) medium education into work, 2) short education into work, 3) destandardised and turbulent trajectory, 4) long period of education into work, and 5) the exclusion trajectory. In comparison to the other two countries, a very strong link was found between early parenthood among Finnish women and trajectories leading to labour market exclusion. 

Based on the findings of these articles, this dissertation illustrates that young adults in Finland often experience economic difficulties. However, these results also demonstrate that economic difficulties are often transitory. On the other hand, this dissertation also shows that signs of long-term disadvantage or exclusion are already present during young adulthood. This is particularly worrying, since disadvantage during the transition into adulthood can have far-reaching effects. 

This study also shows that both the characteristics that do not vary during the transition into adulthood (e.g. social background, gender, and country of birth) and those that can vary (e.g. so-called life-course events) are important in explaining the incidence of economic difficulties. Indeed, having a disadvantaged social background and a low education are particularly strong risk factors among young adults. This study further demonstrates that the consequences and incidence of different life-course events can be influenced by social background, gender, and institutional factors. 

As such, this dissertation shows how complex life-course processes are related to the risk of experiencing economic difficulties during the transition into adulthood in Finland. Register data have enabled the analysis of individual life courses by using long follow-up periods and taking social background into account. Thus, this study illustrates the possibilities of employing register data for analyzing poverty and economic disadvantage through both the life-course and the longitudinal perspectives.