gender differential paper IJCRB

ijcrb.webs.com
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JUNE 2011
VOL 3, NO 2
where H(t) represents the stock of human capital in period t and β is the output share of human capital. we define
variables in efficiency terms so that the equivalent:
(3)
Where:
و و the equation for physical capital accumulation and human capital accumulates according to:
(4)
(5)
and
denote the share of output devoted to physical capital formation an human capital formation. n is rate of
labour force growth (The labor force is exogenous and grows at a constant rate that is given by
), g
denote technological progress(technological progress is exogenous so that the technology index grows at a constant
rate given by and denote, constant depreciation rate of physical capital(By assumption, the
rate of depreciation for the two reproducible inputs is the same).
The steady-state level of efficiency physical capital and the steady-state level of efficiency human capital is:
(6)
(7)
According to 3, 6 and 7, we arrive at the steady-state levels of human and physical capital:
and the steady-state level of efficiency income as:
(8)
With taking the logarithm of 9 the steady-state level of income per worker can be expressed as:
(9)
(10)
The equation 10 can also be expressed in terms of the (steady-state) level of human capital by substituting for sH
and rearranging to obtain:
(11)
COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 177