Geographical Cost of Living Differences: An Update

This article develops a method for estimating current geographical differences in the cost of living index for all states for 1981–1990. These estimates based on BLS data are shown to correspond closely to statewide cost of living estimates for 1989 based on the American Chamber of Commerce Research Association data for selected cities. Living costs are highest in Hawaii, Alaska, Connecticut, Washington D.C., New Jersey, Massachusetts, New York, and California. They are lower in Mississippi, West Virginia, Arkansas, Idaho, and Utah. The basic pattern persists since 1977 with shifts related to economic growth rates.