The government of a developing country has hired you as an economic adviser. The government recognises that their income-per-person is only half that of neighbouring richer countries, and holds the view that their economic fortunes would be greatly improved by increasing the minimum school leaving age to a level in-line with its richer neighbours.

Using the model described above, answer the following questions and show all working:

question :In addition to believing that increasing the minimum school leaving age will raise income-per-person, the government argues that it will also increase the rate at which the economy converges on its richer neighbours.Discuss the conditions required

for (absolute) convergence to hold in this model. Derive an expression for the rate at which (absolute) convergence in output-per-effective worker occurs (in the vicinity of the steady state) and thereby explain the effect that u has on the rate of convergence.