We will leave wage-determination for a macro/labour econ class . we an solve for the wage in the long-run (trend) by assuming that all values and variables are constant over time. e. g. jt = j4+1, vt = vt+1, u4 = ut+1, w7 = wt+1 and yt = yt+1, bt = bt+1, etc. • this gives us the following four equations: u = b+ b[14w + (1 - 14) u] w = w+b[su + (1 - s)w] j = y - w+b[sv + (1 - s)j v = -k+b[1'] + (1 - 1") v] . along with w = by, v = 0 (free entry), a4 (0) = a01/2 and 1(o) = a0-1/2 . this is 4-equations and 4-unknows (u, w, j, v) that we can solve for.