Compensation of Regional Unemployment in Housing Markets

Compensation of Regional Unemployment in Housing Markets
Author: Jos van Ommeren
Publisher: CEPS
Total Pages: 26
Release: 2005
Genre: Housing
ISBN: 9290796340

Why are regional unemployment differentials in Europe so persistent if, as the wage curve literature demonstrates, there is no compensation in labour markets? We hypothesize that workers in high-unemployment regions are compensated in housing markets. Modelling regional unemployment differentials as a consequence of centralized wage bargaining, we show that clearing of land markets may undo the incentive for workers to migrate to low-unemployment regions in general equilibrium. The compensating differentials hypothesis is tested on city-level data for several countries. Controlling for variation in income and amenities, housing is found to be about 3 percent less expensive on average in cities where unemployment is 10 percent up. An analysis of housing demand survey data, which takes account of housing heterogeneity, yields a similar negative relationship. The magnitude of the income effect generated by this compensating differential is consistent with a -0.10 wage curve elasticity. These findings weaken the case for regional support programs.

Poverty and Regional Development in Eastern Europe and Central Asia

Poverty and Regional Development in Eastern Europe and Central Asia
Author: William R. Dillinger
Publisher: World Bank Publications
Total Pages: 80
Release: 2007-01-01
Genre: Social Science
ISBN: 0821371622

"Regional economic development is an interest of policymakers throughout the Europe and Central Asia (ECA) region. One of its principal aims is to reduce poverty in lagging regions by stimulating local economic growth. However, problems exist with this approach. First, it may miss the target. Although geographical concentrations of poverty exist, poor people also live in regions that are - on average - rich. Second, the sources of the problem may be misdiagnosed. Poverty is not only related to where people are, but to who people are. In ECA, poverty is associated with low levels of education and people who are too young or too old to participate in the labor force. Under these circumstances, efforts to bring higher wage employment opportunities to poor regions may have little immediate benefit for the people who live there. Third, relying on regional economic development to address poverty in lagging regions ignores the potential role of migration. The emigration of labor, rather than the immigration of capital, may be a more effective means of reducing the poverty of individuals in lagging regions, though this is unlikely to eliminate pockets of poverty quickly. Development opportunities may exist in poor regions that markets have overlooked. Interventions must be assessed carefully. Some of the traditional instruments used to stimulate regional economic growth have mixed track records. Comprehensive, custom-tailored approaches appear to be a promising alternative. However, governments should be modest in using regional development as a tool of poverty reduction. Policies aimed at stimulating growth in poor regions should be complemented by more direct anti-poverty measures, including targeted transfers and investments in education, and efforts to remove barriers to emigration."--World Bank website.

Institutions and Regional Labour Markets in Europe

Institutions and Regional Labour Markets in Europe
Author: Lambert van der Laan
Publisher: Routledge
Total Pages: 310
Release: 2019-05-23
Genre: Business & Economics
ISBN: 042976698X

First published in 1998, this volume examines the performance of labour markets against the background of different economic and institutional settings in Western and Eastern Europe. The book gives a clear picture of the mosaic of impressive transformations presently taking place in Western and Eastern European labour markets and provides access to information which was previously either widely dispersed or non-existent. The book gives detailed information about how countries and regions deal with transformations described. The substantive country-wide and regional diversity that is discussed allows the reader to understand the role of labour and institutions in the development of countries and regions. The book is written by labour market and regional experts from the various countries concerned.

Collateral Damages

Collateral Damages
Author: Meredith Greif
Publisher: Russell Sage Foundation
Total Pages: 197
Release: 2022-06-23
Genre: Social Science
ISBN: 1610449002

Changes in federal housing policies over the past several decades shifted the primary responsibility for providing low-income renters with affordable housing from the government to private landlords. Federal, state, and local governments have passed laws to ensure that low-income renters are protected from illicit landlording practices. Yet we know little about how private landlords experience local housing regulations. In Collateral Damages, sociologist Meredith Greif examines how local laws affect private landlords and whether tenants are, in fact, being adequately protected. For three years, Greif followed sixty private landlords serving low- and moderate-income residents in the Cleveland, Ohio, metropolitan area to better understand how local regulations, such as criminal activity nuisance ordinances (CANOs) and local water billing regulations, affect their landlording practices. CANOs are intended to protect communities by discouraging criminal activity on private properties. Property owners can face financial and criminal sanctions if they do not abate nuisance activities, which can include littering, noise, drug use, and calls for police assistance, including calls for domestic violence. Local water billing regulations hold landlords responsible for delinquent water bills, even in cases where the account is registered in the tenant’s name. Greif finds that such laws often increase landlords’ sense of “financial precarity” – the real or perceived uncertainty that their business is financially unsustainable – by holding them responsible for behavior they feel is out of their control. Feelings of financial uncertainty led some landlords to use illegitimate business practices against their tenants, including harassment, oversurveillance, poor property upkeep, and illegal evictions. And to avoid to financial penalties associated with CANOs and delinquent water bills, some landlords engage in discriminatory screening of vulnerable potential tenants who are unemployed or have histories of domestic violence or drug use. In this sense, by promoting a sense of financial insecurity among landlords, laws meant to protect renters ultimately had the opposite effect. While some landlords, particularly those who rented a larger number of units, were able to operate their businesses both lawfully and profitably, the majority could not. Greif offers practical recommendations to address the concerns of small- and mid-sized landlords, such as regular meetings that bring landlords and local authorities together to engage in constructive dialogue about local housing policy, issues, and concerns. She also proposes policy recommendations to protect renters, such as establishing the right to counsel for lower-income tenants in eviction hearings and enacting a federal renter’s tax credit. Collateral Damages is an enlightening investigation on how local laws and practices perpetuate disadvantage among marginalized populations and communities, in ways that are hidden and often unintended.