Suppose that we are comparing two countries, and, that are similar in every respect except the education of their population. The production function of both countries is represented by , where Y= output, A= productivity, K= capital stock, L= raw labor, and= the quality (in the form of years of education) per worker.

In Country, all adults have an average of 10 years of schooling.In Country, all adults have an average of 4 years of schooling. Assume that the return to education is 20% per year for the first four years of schooling (grades 1-4), 14% per year for the next four years (grades 5-8), and 7% per year for education beyond eight years.

Using the Solow model of economic growth, calculate the ratio of output per worker in the steady state in the two countries.