Job creation and housing construction: constraints on metropolitan area employment growth

By Raven E. Saks. 2005

341 citations recorded by the source corpus.

Differences in the supply of housing generate substantial variation in house prices across the United States. Because house prices influence migration, the elasticity of housing supply also has an important impact on local labor markets. I assemble evidence on housing supply regulations and examine their effect on metropolitan area housing and labor market dynamics. Locations with relatively few barriers to construction experience more residential construction and smaller increases in house prices in response to an increase in housing demand. Furthermore, housing supply constraints alter local employment and wage dynamics in locations where the degree of regulation is most severe.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/64a0e16ff26740e41e25c9b2bfd36f7b65bb9c09

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Edward L. Glaeser
2. A. Paciorek
3. Albert Saiz
4. P. Ganong
5. C. Hilber
6. Daniel Shoag
7. Haifang Huang
8. Yao Tang

Citations in the corpus

• Housing Supply and Housing Bubbles (2008, methodology): “We also examined data from Saks (2008), which created another index of supply-side restrictiveness based on other previous research mostly surveys.”
• Why Has Regional Convergence in the U.S. Stopped (2012, positive): “More of the income differences are capitalized in to prices in the high regulation regime, just as employment shocks are capitalized into prices in high regulation regimes in Saks (2008).”
• Supply Constraints and Housing Market Dynamics (2013, background): “See Saiz (2010), Notowidigdo (2010), Saks (2008), Gallin (2004), and Blanchard and Katz (1992), among many others.”
• Residential Land Use Regulation and the US Housing Price Cycle Between 2000 and 2009 (2012, background): “Saks (2008) finds that housing supply regulation increases house prices' response to labor demand shocks and reduces employment's long-run responses.”
• Why Has Regional Income Convergence in the U.S. Declined (2017, positive): “Similarly, Saks (2008) and Glaeser et al. (2006) find in the US that employment demand shocks are capital-ized into prices rather than quantities in the high regulation regime.”
• On Local Housing Supply Elasticity (2008, background): “As such, I deploy the recently created Wharton Residential Urban Land Regulation Index (WRLURI) created by Gyourko, Saiz, and Summers (20007) off data from the Wharton Regulation survey (Gyourko and Summers, 2005, 2006).”
• Does Online Search Crowd Out Traditional Search and Improve Matching Efficiency? Evidence from Craigslist (2014, background): “In this section, we discuss the theory of equilibrium unemployment outlined in Pissarides (2000). 9 We use this framework to argue that estimating the effect of online search on the unemployment rate is a natural test for aggregate productivity gains.”
• Beautiful city: Leisure amenities and urban growth (2019, background): “The impact of the increasing valuations of city lifestyle amenities on, respectively, population and housing values should be mediated by the local elasticity of housing supply (Saks, 2008).”
• A New Measure of the Local Regulatory Environment for Housing Markets: The Wharton Residential Land Use Regulatory Index (2008, background): “See Saks (2006) for a review of these and other efforts.”
• Supply Skepticism: Housing Supply and Affordability (2019, background): “Saks (2008) uses instrumental variables and shows that increases in labor demand lead to less residential construction and larger increases in housing prices in metropolitan areas with more restrictive housing supply.”