productivity growth must also raise wages to compete for workers. From this simple model, the consequences on the costs per unit output in the two sectors can be derived. Since the only factor of production within this model is labor, each sector's total cost is the wage paid to workers multiplied by the total number of workers. The cost per unit output is the total cost divided by the amount of output, so with representing the unit cost of goods in sector one at time and representing the unit cost of goods in sector two at time : Plugging in the values for and from above: It can be seen that in the sector with growing labor productivity (sector two), the cost per unit output is constant since both wages and output rise at the same rate. However, in the sector with stagnant labor productivity (sector one), the cost per unit output rises exponentially since wages rise exponentially faster than output. This demonstrates the cost aspect of the Baumol effect (the "cost disease"). While costs in sectors with productivity growth—and hence wage growth—need not increase, in sectors with little to no productivity growth (who nonetheless must raise wages to compete for workers) costs necessarily rise. Furthermore, if the productivity growth differential persists (that is, the low-productivity-growth sectors continue to see low productivity growth into the future while high-productivity-growth sectors continue to see high productivity growth), then costs in low-productivity-growth sectors will rise cumulatively and without limit. Baumol's model can also be used to demonstrate the effect on the distribution of labor. Assume that, despite the change in the relative costs and prices of the two industries, the magnitude of the relative outputs of the two sectors are maintained. A situation similar to this could occur, for instance, "with the aid of government subsidy, or if demand for the product in question were sufficiently price inelastic or income elastic". The output ratio and its relation to the labor ratio, ignoring constants and , is then given by: Letting (i.e. is the total labor supply), it follows that: or It can be seen that as approaches infinity, the quantity of labor in the non-progressive sector approaches the total labor supply while the quantity of labor in the progressive sector approaches zero. Hence, "if the ratio of the outputs of the two sectors is held constant, more and more of the total labor