One of the sad things is that, for instance, all the employees of the City of Chicago MUST live within its borders. As it is becoming more and more expensive to live in cities (and actually Chicago is one of the more reasonably priced) its employees may not be able to live there while being required to do so. So the workforce simply quits and goes elsewhere. I am not sure if San Francisco has a similar ordinance but I can't imagine how the employees do it.