Council housing increases the unemployment rate

Source: Adam Smith Institute
by Tim Worstall

“Lower labour mobility — less ability to move to where the jobs are — leads to a higher unemployment rate. Now, true, the paper looks at home ownership, not council houses — but they are something that doesn’t really exist in that US market analysed. For us we need to know that council house tenures are longer than private rentals (obviously) but also than direct ownership. Further, while it is theoretically possible it’s something that takes many years, if achievable at all, to move council housing across a council boundary. That right to housing does, after all, depend rather upon ‘a local connection.’ From the way that British council housing works this means that the effect upon unemployment is higher than mere home ownership.” (05/14/24)