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Non-Technical SummaryJob creation schemes (JCS) are a form of subsidised employment and aim at the stabilisation and qualification of unemployed persons with disadvantages on the labour market. They are often criticised because they lack explicit qualification of the participants and only promote jobs that are not in line with the market. Recent empirical studies of JCS in Germany haveshown that the average effects for the participating individuals are negative. There may be two possible reasons for this 'ineffectiveness': On the one hand it may be due to the poor quality of programmes in conjunction with often cited stigma-and 'locking-in' effects, on the other hand inefficient allocation of participants may be the reason. Hence, negative mean impacts may not apply to all strata of the population since treatment effects are heterogeneous.In this paper we analyse if individuals gain from participation in terms of employment. To do so, we apply matching methods to estimate the average treatment effect on the treated with respect to gender-specific and regional differences in a first step. In a second step, we examine three sources of effect heterogeneity: We start with a selection of special problem-groups of the labour market, followed by a simple indicator based on the individual's number of disadvantages (target score) to analyse whether programme effects differ corresponding to the individual labour market hindrances. At least we use the estimated participation probability to answer the question whether a higher participation probability correlates with a higher programme impact.We use data on all participants in JCS, who have started their programmes in February 2000, and a comparison group of nonparticipants, who have been eligible for participation in January 2000 but have not participated in February.Our results refer to December 2002. We find positive employment effects for women in West Germany, whereas the results for men in that region are insignificant. In East Germany men and women are harmed by programme participation. Our findings for the selected target groups of the labour market show that JCS do neither harm nor improve the labour market chances for most of the groups. Persons who benefit from participation are long-term unemployed men in West Germany and long-term unemployed women in both regions as well as older women and women who are hard-to-place in West Germany. Referring to the results of the targe...