INTERNATIONAL JOURNAL OF ENGINEERING, SCIENCE AND - Volume 2, Issue 4 , December 2013

Pages: 11-18

Date of Publication: 01-Dec-2013

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INTRODUCING AN INTEGRATING FACTOR IN STUDYING THE WAGE EQUATION

Author: Olala, Gilbert Owuor? Othina, Christopher Odhiambo*

Category: Engineering, Science and Mathematics

Abstract:

In this paper a first order wage equation is solved by the method of integrating factor. The subsequent wage function is then analyzed and interpreted for stability. The function could initially stand off the equilibrium wage rate but in the long run, it asymptotically stabilizes in inter temporal sense. It is observed that use of an integrating factor in solving the wage equation is just as effective as Laplace transforms demonstrated in [6] but with an advantage of being simple with limited algebra

Keywords: wage equation, wage function, wage rate, stability, and equilibrium wage rate.