EMPLOYMENT FROM HOUSING - A RESOURCE FOR RAPIDLY GROWING URBAN POPULATIONS

Urban populations are growing, and are likely to continue to grow, at unprecedented rates. Not only are very large numbers of dwellings required in urban areas in developing countries but also major increments in employment are needed. In the past, housing ministers have tended to justify housing on social grounds. Currently, however, there is a growing recognition that housing development has the potential to provide employment for large numbers of people both directly and indirectly. This paper reviews the literature on the links between employment and housing development and shows that investment in shelter is very effective for promoting employment, especially among lower-income groups; some of the benefits to the economy tend to be inversely proportional to housing cost; and the informal sector and small-scale enterprises tend to out-perform the formal sector and larger enterprises.