Valuing the Unemployment Option
Imagine two unemployed workers, Jordan and Kai. They both receive the same weekly unemployment benefit. However, Jordan is in a rapidly growing industry with many job openings, while Kai is in a declining industry with very few. Explain why the total value of their 'reservation option' (the value of remaining unemployed) would likely differ. In your answer, identify the two main components that determine this value and describe how they apply to both Jordan and Kai.
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Science
Economy
CORE Econ
Social Science
Empirical Science
Economics
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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