Let's consider homogeneous workers (with a population normalized into measure 1) search for their jobs in a frictional labor market. Job offers arrive each period with probability . The job offer w draws from an exogenous C.D.F. F (w). If a worker rejects the job offer in the current period, he/she re- ceives unemployment benefits b, and will then have to wait until next period to receive a new possible offer. If workers choose to accept their jobs, they will continue to receive wage w in each period. However, current jobs are destructed with the probability in each period