I present and rest the hypothesis that the cost of living (COL) positively
influences the labor force participation (LFP) of married women. Based on h
ousing values and regional variables, I first predict COL for a sample of 1
50 metropolitan statistical areas (MSAs) using a smaller subsample for whic
h geographically comparable family budget data are available for 1980. Resu
lts from estimating a logistic LFP model using census MSA data confirm my h
ypothesis and suggest that COL embodies locality-specific amenities rather
than "pure" prices.