Welfare recipients’ transition into employment and employment stability in Germany

While flexible labour markets offer employment opportunities for unemployed individuals, they might not foster stable employment. This paper studies the determinants of unemployed welfare recipients’ transitions into employment and its stability in Germany. The analyses are based on an inflow sample of welfare recipients from large‐scale administrative data and semi‐parametric hazard models with individual‐level frailty. Some labour market segments offer quick employment entry but not sustainable employment. While human capital is positively related to employment take‐up and stability for both sexes, the role of several sociodemographic determinants differs by gender.