A small comment concerning elasticity:

you wrote

> the elasticity seems to be given by $\dot{L}/\dot{GDP}$

[Wikipedia](http://en.wikipedia.org/wiki/Elasticity_%28economics%29) specifies

> elasticity is the ratio of the percent change in one variable to the percent change in another variable.

> the "x-elasticity of y", also called the "elasticity of y with respect to x", is:

> $$E = \frac{\partial ln(y)}{\partial ln(x)}$$

According to the [document](http://kilm.ilo.org/KILMnetBeta/pdf/kilm19EN-2009.pdf) (p4):

> The employment elasticity is defined as the average percentage point change in employment for a given employed population group (total, female, male) associated with a 1 percentage point change in output over a selected period.

So I suppose it has to be $\frac{\dot{L} GDP}{L \dot{GDP}}$. I may easily be wrong, as I don't know much about economy. Maybe you implied this when you wrtoe *the growth in* but then it wasn't clear at least for me.

Btw, if you use Markdown+Itex and use double brackets for the wiki and single brackets- curly brackets for outside links (click Source to see), the links are automatically generated.