Department of Mathematics & Computer Science, Kisumu Polytechnic, Kisumu, Kenya
Online published on 1 February, 2014.
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.
Wage equation, wage function, wage rate, stability, equilibrium wage rate
