Based on a survey conducted by the DARES on French beneficiaries, two analyses are proposed, based on the “human capabilities” approach. In the first analysis, the range of possibilities open to these beneficiaries is examined, while the second focuses on how the latter perceive their living conditions. Comparisons between these beneficiaries’ perceptions and those of a control group make it possible to assess the impact of two State-subsidised labour contracts in the private and public sectors. On the whole, labour contracts of this kind are found to improve the range of possibilities open to beneficiaries in terms of their living conditions. On the other hand, the incentive schemes launched in the private sector (CIEs) were preferred by most respondents to direct employment programs (CESs), although the latter are said to make the beneficiaries feel more useful than CIEs and to give them greater self-confidence.