Effectiveness of Active Labour Market Programmes on the Job Quality of Welfare Recipients in Germany

Abstract

Using rich administrative data on unemployed welfare recipients in Germany and propensity score matching, the author analyses the effects of participating in four major active labour market programmes (ALMPs) on various dimensions of job quality. In Germany, welfare recipients may suffer from poor job quality because they are forced to accept any reasonable job offer. However, few studies consider the effects of participation in ALMPs on job quality. The results imply that participation in a programme not only increases the probability of taking jobs but also increases the probability of holding a high-quality job for some dimension of job quality. In particular, further vocational training is very effective in terms of job quality for West German women. Thus, job centres should focus on the activation of unemployed welfare recipients.