Housing and Labour Markets

Abstract

Housing interacts with the labour market in a number of different ways. For example, housing tenure influences regional mobility, which in turn affects the efficiency of the labour market, while housing subsidies can influence work incentives. Homeowners and public housing tenants are less mobile between regions than private renters are. On the other hand, homeowners stay longer in their jobs and are more successful, for a variety of reasons, in gaining employment in their local area. The value of a rental subsidy together with eligibility criteria can reduce the work incentives of those entitled to housing assistance, though the evidence supporting this contention is weak. Neighbourhoods may also affect labour market outcomes: Those living in very low-income low-employment neighbourhoods have access to fewer educational, health, and community resources and may be stigmatised when applying for jobs.