Abstract:This thesis tries to analyze in the framework of neo-classical growth theory the effects of human capital on income distribution. It first tries to integrate the question of income distribution into the neo-classical growth theory. We try to study the questions in a closed economy with this rate flexible. this thesis tries to investigate an economy with only two levels of human capital. Under some assumptions inclusive that of depreciation on human capital and material capital being 1 and 0, respectively, we solve the social welfare maximum question from the angle of a social planner and come to the conclusion that there would be distributive inequality in the Solow steady growth path and its extent be a constant. On the equilibrium, the rate of wages for both groups of workers would be constant. It is said that the rates of returns to both material and human capital should be the same when the economy equilibrates. For individuals who are able to invest in human capital to become skilled, it is indifferent to invest in both kinds of capital. There are peoples, therefore, who migrate between the labor markets for skilled or unskilled workers. Their mobility may lead the economy go away from the equilibrium, but also, more possibly, lead it return to the new equilibrium again.