On July 24, 2007, the federal minimum wage was increased from $5.15 per hour to $5.85 per

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On July 24, 2007, the federal minimum wage was increased from $5.15 per hour to $5.85 per hour. Consider the effect of this increase on an unemployed job seeker. Using a job-search model, what is the effect on the probability of finding an acceptable job in any given period? How does this increase affect the expected duration of unemployment and the expected wage (once employed)?

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