
Cross-wage elesticity:
Njk= (%△Lj) / ( %△Wk)
The % change of demand for labor of input j with 1 % change in wage rate of input k.
Njk depends on the magnitude of Output Effect (OE) and Substitution Effect (SE).
If OE>SE, Njk<0, j and k are Gross Complements.
If SE>OE, Njk>0, j and k are Gross Substitutes.
The magnitude of OE and SE are determined by Hick-Marshall Laws with the technology and market conditions changes.