This paper examines, in the Ramsey framework, the implications of endogenous labor participation rate and efficiency wages on capital accumulation. It is shown that with endogenous labor participation rate, the economy can be dynamically inefficient. When efficiency wages are taken into consideration, the economy is dynamically efficient. The modified golden rule as derived from the Ramsey model is bounded from below by the endogenous labor participation rate model, and above by the efficiency wage model.