The Tax Foundation, a non-partisan research organization, recently unveiled a study indicating the value of $100 in all 50 states.
The value of $100 is worth the most in Mississippi ($115.21), Arkansas ($114.29), South Dakota ($114.16), Alabama ($114.03) and West Virginia ($113.12). Areas including the District of Columbia ($84.96), Hawaii ($86.06), New York ($86.73), New Jersey ($87.34) and California ($89.05) have the lowest value.
Alan Cole and Scott Drenkard, who organized the study, said typically states with the higher nominal incomes maintain higher price levels as a result.
“This is because there is a relationship between the two: In places with higher incomes, the prices of finite resources like land get bid up,” Cole and Drenkard wrote in the report. “But the causation also runs in the opposite direction. Places with high costs of living pay higher salaries for the same jobs. This is what labor economists call a compensating differential; the higher pay is offered in order to make up for the low purchasing power.”