Department of Economics
University of California, Irvine
NBER Working Papers and Publications
|November 2009||Private Deception and the Rise of Public Employment Offices in the United States, 1890-1930|
in Studies of Labor Market Intermediation , David H. Autor, editor
|December 2007||Private Deception and the Rise of Public Employment Offices in the United States, 1890 - 1930|
At the turn of the 20th century, state and local governments in the United States began to establish public employment offices. These non-profit governmental organizations match job seekers and businesses, one of their main objectives being to protect job seekers from fraudulent activities by private employment agencies. In this paper, I propose a theory that describes the malpractices of private employment agencies as a situation of asymmetric information between job seekers and the private employment agencies, which could cause adverse selection in the labor exchange market. The establishment of public employment offices can be viewed as a policy device to eliminate low-quality private employment agencies committing malpractices. I show that public employment offices helped lower the deg...
Published: Woong Lee, 2009. "Private Deception and the Rise of Public Employment Offices in the United States, 1890-1930," NBER Chapters, in: Studies of Labor Market Intermediation, pages 155-181 National Bureau of Economic Research, Inc.