B3

:1. LC} 2 In the onesided search model, suppose that workers suffer some level of disutiliw from highwage jobs, perhaps because these jobs entail long work hours or extra management responsibilities. That is, the value of employment is V, [w] for w {i ml, and P; (w) k for w '3 w], for some wage is}, where k is a xed number, I; } I]. Under these circumstances, determine the optimal search strategj.I for a worker, {i.e., what wage offers an unemployed worker will accept}. Is this a reservation wage strategy? Explain