A Review of Regulatory Barriers to Employer Ability to Recruit and Retain Employees

“While the impacts of residential development regulations and of economic growth on housing markets have been studied extensively, the impact of housing supply on labor markets and local economic growth (other than the direct effect of construction-related jobs) has not…In light of this fact, the U.S. Department of Housing and Urban Development (HUD) commissioned a review of the literature on the influences of residential development regulation on housing markets, and through them, on businesses, labor markets, and regional economic competitiveness.

…This paper is intended to provide a conceptual overview of the impact of development regulations on housing markets and how these impacts may influence labor markets, business location decisions, the economic competitiveness of metropolitan areas, the industrial composition of metropolitan areas, and labor productivity” (p.1). (Abstractor: Author)

“In short, this investigation into the impact of development regulation on labor markets and businesses raises far more important questions than the existing literature permits it to answer. [These research questions are outlined] in each of the core subject chapters. However, the final chapter describes four major research directions that should be pursued to further the understanding of the linkages between housing and employment and enable improved policy decisions. These broad initiatives are developed from multiple research needs and are not listed in a priority order” (p.5). 1) "Update and develop better measures for land use regulations and create a national database” (p.5). 2) "Quantify how the diversity of regulations within a metro area affects the performance of entire metro area in order to: (a) gain finer resolution of impact by industry, sub-metro geography, and type of development structures; and, (b) determine if it is the quantity or the distribution of workforce housing that matters with respect to house prices, labor outcomes, and business growth, stability, and/or composition” (p.6). 3) "Determine how housing costs and congestion affect industries and firms, including the following: • the rate of overall economic growth; • changes in industry composition; • differentiation by occupation, level of education, and income; • identification of industry winners and losers as a result of rising house prices; and, • identification of industry winners and losers as a result of congestion (commuting cost, delay, or uncertainty)” (p.6). 4) "Develop qualitative detail on how rising house prices affect employers through market research to address the following: • recruitment strategies, e.g., longer search, wider search, subsidize transportation/housing, training; productivity measures, e.g., lateness, absenteeism, telecommuting, job shopping on the job; and, • retention / turnover , e.g., shorter tenure, higher wage and promotion” (p.7). (Abstractor: Author).

• Last Updated:
• Created:
• Resource Publication Date: 2008
• Author(s): Carliner, Michael; Bowles, Liza; Rodda, David; Belsky, Eric; McCue, Daniel
• Organizational Author(s): Newport Partners, LLC; Abt Associates; Joint Center for Housing Studies
• Funding Source: U.S. Department of Housing and Urban Development
• Resource Availability: Publicly available
• Posted by: Wesley Peterson
• Posted in: Workforce System Strategies