Beneficiaries of Social Disability Pension in Small Municipalities in the Northern Region of Portugal: Application of Cluster Analysis in the Identification of Potential Causes

This study is focused on the northern region of Portugal and addresses the number of road accidents with casualties and the number of beneficiaries of the social disability pension. Municipalities with low population density are mostly located in the hinterland. The phenomenon of population aging entails the problem of people who are unable to work and become beneficiaries of the social disability pension. The hierarchical clustering method applied in this paper characterizes 46 municipalities in northern Portugal with a population of less than 20,000 inhabitants – designated small – according to economic activity, rate of road accidents with casualties and disability pensioners. These municipalities were divided into two homogeneous groups or clusters. It was possible to identify that Cluster 1 comprises the innermost municipalities featuring few road accidents with casualties, not many disability pensioners, and a small number of companies compared to Cluster 2. This study can contribute to helping local governments’ decision-making process to improve the economic activity, reduce the region’s human desertification, and improve municipal road conditions.