Department of Mathematics & Computer Science, Kisumu Polytechnic, P. O. Box 143, 40100, Kisumu, Kenya
Online published on 11 June, 2014.
In this paper, a differential operator has been used to solve the wage equation. The subsequent wage function is analyzed and interpreted for stability. The equation incorporates speculative parameters operating in free range. The variations of these parameters have caused stability and instability of the wage function in certain circumstances. Where the wage function is exponential, asymptotic stability towards the equilibrium wage rate is observed but where it consists of both exponential and periodic factors, the time path shows periodic fluctuations with successive cycles giving smaller amplitudes until the ripples dies naturally. It is also observed that though differential operator is just as effective as variation of parameters demonstrated in [6], it is rather simple and fast with limited algebra.
Wage equation, wage function, wage rate, equilibrium wage rate, stability, operator method, and volatile wage rate