RDP 9404: Wage Dispersion and Labour Market Institutions: A Cross Country Study Equation (18)

\frac{W_{i j}}{P_{i j}} = \frac{\partial Y_{i j}}{\partial L_{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} - 1} a_{i j} L_{i j}^{ρ_{i j} - 1}