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Hi, I am a little confused on how to complete this problem. Any help will be greatly appreciated. In all of the problems below, you

Hi, I am a little confused on how to complete this problem. Any help will be greatly appreciated.

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In all of the problems below, you are to assume that the match productivity distri- bution facing searchers is Uniform, with upper bound 20 and lower bound 0. Then the probability density function of the match productivity value, 0, is g(0) = 0.05 for # E [0, 20] 0 for # @ [0, 20] and the cumulative distribution function of wage offers is 0 for 0 20 You are to assume that the discount factor, , is equal to 0.8, and that the probability of receiving an offer in any period of unemployed search is * = 0.6. Let the utility of being unemployed in any period be up = 0, and assume that the bargaining power of workers is o = 0.4. The value to the firm of an unfilled vacancy is 0. You should consider the population of individuals to be arbitrarily large. 1. Individuals are in the labor market for two periods, t = 1, 2. 1. What are the reservation wages of unemployed searchers in each period, that is, w and w}? 2. What proportion of the population is unemployed at the end of periods 1 and 2? 3. Describe the distribution of wages accepted in each period

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