This research paper addressed the issue of evaluating and improving potential links between employment impacts of environmental regulation and benefit-cost analysis. The research examined labor market conditions that would justify relaxing the full employment assumption within benefit-cost analysis. This information may be influential to the opportunity cost of unemployed labor and addresses the measurement of influential variables. The research was presented at two workshops in Washington, D.C.: a “planning” workshop in Spring 2012 and a “presentation” workshop in Fall 2012.