Assume that, on average, an applicant waits 12 months before being hired into a government job (as a mail clerk). George could work as a mail clerk in the private sector immediately for a salary of $ 2,500 per month, but he chooses instead to remain unemployed and wait for the government job. In the meantime, he collects $ 500 per month in unemployment insurance benefits ( for 12 months). Assume that the government job lasts two years, that his private sector job will last just as long ( plus the year he can wait for the government job), that salaries are constant , that the interest rate is 10 percent per year, and that leisure has no value to George . Determine the minimum public sector premium that must exist for George's decision to be rational . What are the pros and cons of using queues as a measure of rents or excess payments paid to workers in the public sector?

( do not solve with sample method formula this is a labor economic question)