"Bringing welfare recipients into jobs is a major goal of German labour market policy since a reform of the year 2005. Direct job creation providing participants with temporary subsidized jobs mainly in the non-profit sector plays an important role for achieving this goal. There are three...

"Using representative linked employer-employee data of the German Federal Employment Agency, this paper analyzes to which extent full-time employees who earned low wages (less than two-thirds of the median wage) in 1998/99 were able to earn higher wages in the following years, and which factors...