RDP 9404: Wage Dispersion and Labour Market Institutions: A Cross Country Study Equation (17)

\begin{matrix} Y_{i j} = {(a_{i j} L_{i j}^{ρ i j} + (1 - a_{i j}) K_{i j}^{ρ i j})}^{1 / ρ_{i j}}, & - \infty \leq ρ_{i j} \leq 1 \end{matrix}