Abstract

AbstractUsing 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.

Highlights

  • Technological change, globalisation and the rise of knowledge intensive work are often associated with declining job quality (Green, )

  • I address the question whether activation can foster more and better jobs by analysing the effectiveness of major active labour market programmes (ALMPs) on employment prospects and job quality for unemployed welfare recipients in Germany

  • Using rich administrative data and a matching approach, this article is the first to analyse the effects of participation in four major ALMPs – OneEuro-Jobs, classroom training, in-firm training and further vocational training – for German welfare recipients on various dimensions of job quality

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Summary

Introduction

Technological change, globalisation and the rise of knowledge intensive work are often associated with declining job quality (Green, ). A shift towards new welfare, i.e. a stronger emphasis on labour market participation through activation and not on income replacement, has been a major issue in labour market reforms in Europe (Eichhorst et al, ; Taylor-Gooby et al, ). In this sense, a new means-tested welfare benefit has been introduced in Germany that emphasises the activation of all welfare recipients. I address the question whether new welfare policies can foster more and better jobs, by analysing the effectiveness of major active labour

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