To determine the contributions or labor, capital, and other factors ill Plimsoll growth. we substitute Representative numbers for the period 1900-1 ) into equation the growth of Since worker hours have grown and has growl per year.
1.8 = Y4 (1.2) + T.e. = 0.3 + 1.5
Thus of the 1.8 percent-per-year increase in output per worker, about 0.3 percentage point is due to capital deepening, while the largest portion, 1.5 percent per year, stems from T.e. (technological change).