Abstract
I present and test the hypothesis that the cost of living (COL) positively influences the labor force participation (LFP) of married women. Based on housing values and regional variables, I first predict COL for a sample of 150 metropolitan statistical areas (MSAs) using a smaller subsample for which geographically comparable family budget data are available for 1980. Results from estimating a logistic LFP model using census MSA data confirm my hypothesis and suggest that COL embodies locality-specific amenities rather than “pure” prices.
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