Problem
On July 24, 2007, the federal minimum wage was increased from $5.15 per hour to $5.85 per hour. Consider the effect of this increase on an unemployed job seeker. Using a job-search model, what is the effect on the probability of finding an acceptable job in any given period? How does this increase affect the expected duration of unemployment and the expected wage (once employed)?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.