FIGURE 9-1: Technological Progress and the Solow Growth Model Labor-augmenting technological progress at rate g enters our analysis of the Solow growth model in much the same way as did population growth at rate n. Now that k is defined as the amount of capital per effective worker, increases in the effective number of workers because of technological progress tend to decrease k. In the steady state, investment sf(k) exactly offsets the reductions in k attributable to depreciation, population growth, and technological progress.