In the onesided search model, suppose there are two kinds of workers in the population, type h and type I. These two types of workers are identical, but when type h workers are unemployed, they receive more utility from unemployment than type lworkers do, even though both types of workers receive the same employment insurance benets. Perhaps type h workers receive some extra benet from work at home that type | workers do not receive. What differences will we observe in practice between the two types? Which type has the higher unemployment rate, and which type tends to be employed in higherwage jobs? Explain your results. Since type h workers receive more utility from unemployment, even though they are identical and receive the same employment insurance benets, they will T and they will have reservation wage. In equilibrium, Y workers will have a higher unemployment rate, and the T workers who are employed will tend to receive higherwage jobs since the reservation wage for T workers is higher