, the ratio of minimum to median wages does not affect equilibrium employment rates in most of the specifications tried. E. ALMPs and Wage-Setting Behavior 62. To assess the effect of ALMPs on wage-setting, the following “wage curve” was estimated: log ( B W i t P i t A i t ) = α t log ( u i t ) + α 2 ALMP it + α 3 X it
offset the adverse effects of demographics and sustain trend growth in the medium term. Contents II. Employment and Wage Effects of Active Labor Market Policies A. Introduction B. Why Might ALMPs Increase Employment? C. Identification Issues and a Critical Survey of Previous Studies D. Empirical Identification of the Effect of ALMPs on Employment Rates E. ALMPs and Wage-Setting Behavior F. Expenditures on ALMPs in France G. Final Remarks Appendix I: Synthesis of the Relevant Literature Appendix II: The OECD Labor Market Policies Database