Please help me answer this question, I have NO idea on how to go about answering this:
Is human capital (H) substitutable, complementary, or both with labour (L)? Explain. Hint: Think of the impact for a single firm making the entire economy’s output run by a central planner.
I got answers to this before that said that human capital & labour are the same thing but in the question the function is:
Y = A*K^α*L^(1−α)/2*H^(1−α)/2 ; L is the # of workers employed & H is the level of human capital which equals the # of post-secondary degrees held by workers
Thank you.
Is human capital (H) substitutable, complementary, or both with labour (L)? Explain. Hint: Think of the impact for a single firm making the entire economy’s output run by a central planner.
I got answers to this before that said that human capital & labour are the same thing but in the question the function is:
Y = A*K^α*L^(1−α)/2*H^(1−α)/2 ; L is the # of workers employed & H is the level of human capital which equals the # of post-secondary degrees held by workers
Thank you.