In this paper we develop a neoclassical growth model that aggregates different types of labor skills from strict complementarity to perfect substitution. After having derived general balanced growth conditions and developed explicit growth paths for capital and aggregate labor force, the model...

In a neoclassical economy with endogenous capital- and labor-augmenting technical change the steady-state growth rate of output per worker is shown to increase in the elasticity of substitution between capital and labor. This confirms the assessment of Klump and de La Grandville (2000) that the...