Applying a CRESH aggregate labour index to generate age-wage profiles

摘要

This article shows how a CRESH (Constant Ratios of Elasticity ofn Substitution, Homothetic) labour index can generate more realisticn optimal wage profiles than traditional (restrictive) functional forms.n The CRESH index function allows for age-specific elasticities ofn substitution that are implied by a proper choice of CRESH parameters.n The ability to generate plausible optimal age-wage profiles can ben useful in, for example, calibrating demographic macroeconomic models.n The