Rent Control Reversal Could Slash National Unemployment Rates by 1.8%
The study looked at how housing rules affect unemployment rates in different regions. They found that when people can't easily move between areas due to rent subsidies and controls, it can lead to higher unemployment. This is because unemployment benefits keep wages from dropping too low, causing more people to be out of work. By analyzing data from the UK, the researchers estimated that removing rent restrictions could have significantly lowered national unemployment rates. This suggests that changing housing regulations could help reduce unemployment levels.