Applying a CRESH aggregate labour index to generate age-wage profiles
| Autor: | Bjarne S. Jensen, Ross Guest |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2016 |
| Předmět: |
Economics and Econometrics
Index (economics) Elasticity of substitution Applied economics age-wage profiles media_common.quotation_subject Aggregate (data warehouse) Wage Index function wage premium Microeconomics Macroeconomic model CRESH function Econometrics Economics Constant (mathematics) health care economics and organizations Labour substitution media_common |
| Zdroj: | Guest, R & Jensen, B S 2016, ' Applying a CRESH aggregate labour index to generate age-wage profiles ', Applied Economics Letters, vol. 23, no. 1, pp. 27-33 . https://doi.org/10.1080/13504851.2015.1047083 |
| DOI: | 10.1080/13504851.2015.1047083 |
| Popis: | This article shows how a CRESH (Constant Ratios of Elasticity of Substitution, Homothetic) labour index can generate more realistic optimal wage profiles than traditional (restrictive) functional forms. The CRESH index function allows for age-specific elasticities of substitution that are implied by a proper choice of CRESH parameters. The ability to generate plausible optimal age-wage profiles can be useful in, for example, calibrating demographic macroeconomic models. The CRESH analysis also provides one explanation for the well-established divergence of actual relative wages by age from the relative age-specific intensity parameters of a simple additive labour index. Moreover, CRESH labour index may explain the increasing relative wages for middle-aged workers as a result of employing larger numbers of older workers (population aging). |
| Databáze: | OpenAIRE |
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