4. LO 2 In the one-sided search model, suppose that workers suffer some level of disutility from...

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4. LO 2 In the one-sided search model, suppose that workers suffer some level of disutility from high-wage jobs, perhaps because these jobs entail long work hours or extra management responsibilities. That is, the value of employment is for and for for some wage where k is a fixed number, Under these circumstances, determine the optimal search strategy for a worker, (i.e., what wage offers an unemployed worker will accept). Is this a reservation wage strategy? Explain.

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Macroeconomics

ISBN: 9780135651568,9780135616710

6th Edition

Authors: Stephen D. Williamson

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