What happens in the basic job search model if the uncertainty concerning the wage offer is switched off, i.e. there will only be one possible wage offer w0 (Hint: Similar as in the basic Diamond model) ? Answer this with respect to the job offer acceptance probability, the probability of moving to work and the unemployment duration? (Labour Economics)

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Earnings, Productivity, And The Job Market
Section: Chapter Questions
Problem 11CQ
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What happens in the basic job search model if the uncertainty concerning the wage
offer is switched off, i.e. there will only be one possible wage offer w0 (Hint: Similar as in the
basic Diamond model) ? Answer this with respect to the job offer acceptance probability, the
probability of moving to work and the unemployment duration? (Labour Economics)

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