Rising Cost Of Living In The Current Regime

The aim of this study is to investigate the existence of rising cost of living and examine the responses of the community against the rising cost of living in KPK Pakistan. The rising cost of living dilemma is not only dace by one country. The study highlights the factors which enhance the rising cost of living in KPK. These factors are Income level, Price and population. The primary date collected from the six districts of KPK Pakistan. The study targeted 150 respondents randomly for data collection. The six districts were Peshawar, Charsada, Mardan, Bannu, Noshehra and Kohat. Six hypotheses were developed which were tested under one tail t-test. Findings show that out of six two null hypothesis rejected and rest four accepted. Because the respondents was not agree with statement of four hypothesis which was establish in study. The four hypotheses was about migration, multiple job, job hopping and community members give preferences on the basic items on the luxurious items which were not accepted. The community members do not leave their home town, not take interest in multiple job because they spent their time with their families, do not take interest job hopping and community members are in undecided situation to give the preference to the luxuriously items or not due to social status, and consider as status symbol because they feel that these luxurious items become daily life practice.

Introduction

The rising cost of living is the well-know community dilemma around the world from last 50 years (Church, 2011) Cost of living suggest that Adam Smith believed in a minimum wage equal to twice what it would it cost one working person to raise a family with two kids (Georedd, 2010). The rising cost of living reminiscent of many other countries is test for the present Thai government’s stability, particularly in the stir of political tumult in the Middle East and gigantic natural catastrophe throughout many counties of the world (Leeahtam, Treesraptanagul, 2011). Since 1950, the rising cost of living has massive impact on in the developed countries community like America, Japan, Europe, Australia and New Zealand, the community has paying enormous amount for a few basic goods (Bongaarts, 2004). The rising Cost of living in the United States can vary depending on locality and standard of living. Immense cities like Los Angeles, New York and Chicago are likely to have towering costs of goods and services (Castro, 2009).

The rising cost of living is the problem has faced by the African and South Asian countries .In South Asia the some factors which influence the living cost are similar to the west countries .like inflation, income, social status, expenditure. The factors which are not influence by the cost of living in the western world but have the vast impact on the Asian countries community like Pakistan, India, Bangladesh is the family size and social culture (Sothearith, Sovannarith, 2003). In Pakistan the cost of living is accelerating mode since partition but last two decade inflation rate accelerated in double digit. The inflation is the basic element and impressive impact of the rising cost living (Khan, SchimmelpfennIig, 2006).

The households are facing problem of paying higher prices for necessary items – like shelter, food, clothes, electricity, gas water, and transport. Many households’ feels that prices are raising too fast (Church, 2011). The living cost of community is escalating because the prices of basic products are sky-scraping. Rising prices are equal to the inflation; rising prices would mean you have less buying power.

Rising cost of living mean as a persistent raise in the general price level, means is the rate at which the prices of goods are rising (Tahir.S, 2006). According to Qqyyum (2011) the rising cost of living was recognized by the Consumer Price Index which determines the average price of customer goods and services purchased by households. The rising cost of living are connected with rapid emergent economy where the claim for goods and services is higher that the country’s creation ability (Haq, Hussain, 2008). The central banks are the authority in the countries to control the inflation, through supply of money by rising or falling short term interest rates. For instance, the European Central Bank decides to keep yearly inflation rate under 2% to encourage price steadiness and appropriate growth. (Massod, 2011).

The purpose of this study is to identify the community response against the rising cost of living in Khyber Pakhtunkhawa. This study will be accomplishing to inspect the causes of rising cost of living and responses of the community about the rising cost of living in Khyber Pakhtunkhaw. The rising cost of living problem has faced by the Khyber Pakhtunkhwa community. The factors that influence the rising cost of living are change in the Pakistan due to culture difference as compare to the other countries in the world (Iqbal, 1994). This study examines the response of the community and gives the solution for better living standard.

Literature Review

The literature shows that influence that cost of living are affected by the various factors. Like Inflation, Income, Size of family, Migration, and Better job opportunities. First –inflation impact. The cost of living affect by the inflation, the inflation is nothing more than a sharp upward movement in the price level (R.P Cent 1996). Born said (1996) “Too much money chasing too few goods”. The sharp increase in goods and services prices over the past couple of years has raised serious concerns about the food and nutrition situ­ation of poor people in developing countries, about inflation, and in some countries about civil disturbances. Real prices are still below their mid-1970s peak, but they have reached their highest point since that time. Both developing and developed country gov­ernments have roles to play in bringing prices under control and in helping poor people (Braun, 2008).

Khan et al, (2006) In Pakistan the inflation relatively low for quite a long time, the inflation rate accelerated in Pakistan late 2003 after the 1998-99 crises, inflation was reduced to below 5 percent by 2000 and remained stable through 2003. Rigid monetary policy joint with fiscal consolidation appears to have contributed to this low inflation environment

The under develop countries have single digit inflation rate indicates that these countries are on the road to emerged as developed country. China, India, Brazil, Turkey, Russia and Bangladesh are the under develop countries, they have single digit inflation rate which suggest that they are moving towards as the developed country. Its mean the government have a stable monetary police there are not massive different between in the balances of payments and government have a sufficient reserve. In these countries there is political stability and equally opportunity available to every citizen of the country for employment. The value of under develop countries currencies have rising gradually. Pakistan, Egypt, and Venezuela are the under develop countries but they have double digit inflation rate, that suggest the economy situation is vice versa to the above mention under develop countries. (Masood, 2011)

Secondly, the income influence the cost of living when the prices of consumer goods is rising the community is not be able to buy it because of the income is not allowing him to buy it (Pochet, 1997 ). The income has impressive impact on the rising cost of living. In the USA people have a very high level of income the living cost is much better than the east countries that is why people from all over the world desire to move into the country because of the very high salaries as well as the plenty of job opportunities. The community of the USA has the well income source as compare to the Asian countries. The USA is the richest and most dominant nation in the world. At present, it ranks 1st in terms of economy and quality of life. The current GDP of the nation is over 13 trillion Euros with a per capita GDP of over 44,000 Euros (Castro, 2009). Haworth and Rasmussen in his study (1973) said that uniform salary package is not useful tool to decrease the cost of living.

The income level in USA was declined last three years due to recession. According to DeNavas, Proctor, Smith (2011) household income was $49,445 in 2010, 2.3 per­cent turn down from 2009. In 2007 when the recession hit the US economy, real income has declined 6.4 percent and is 7.1 percent income level was top in 1999. Family and nonfamily household’s income level turned down between 2009 and 2010. The income level of family house­holds was turndown by 1.2 percent to $61,544 on average base the income of nonfam­ily households was turndown by 3.9 percent to $29,730. According to Africa Development Bank (2009) the income levels in Africa; Seychelles has the maximum per capita income $ 8,180 in 2005. Egyptian per capital income was $ 1,260. The income level of other Africans countries was between $ 5,000 and $ 6,000. South Africa and Tunisia was per capita income levels of $4,700 and $ 2,800, for the same duration.

Asian countries like Chain the per capita income of that person who run households in 1995 was $735, but rose 24% in 2006.the middle class householder pre .capital income $1,300 to $2,400 that income the spend on necessary items (Dyck,Hansakul, Saxen; 2009).

Individual led his life accordance to price. The income always affect by the price whenever the price of consumer goods are rising the individual look upon his income; that his income permit him to buy the particular product. In America according Castro (2009) the prices of food items, clothing accessories are affordable due to vast variety in food and clothing. The consumer has the opinion to shift from one product to another and the Chains products give them more space to the consumer. The housing cost is very high due to migration of the people in this part of the world.

The high food prices restrict the poor and middle class families to change the food consumption pattern, even the poor families’ shift to less balance diet which is injurious for their health. According to Braun (2008) the families spend 50 to 60 percent of their income on the food items in US. In US the living cost of one person is $1of one day, if there is increase in the food prices 50% the per person living cost will be $1.50, and your family member are five; current budget of $5 are not sufficient to fulfill the requirements of the family. Growing energy cost is not included in this and the future domestic budget.

According Demeke, Pangrazio, Maetz (2009) the prices of rice vegetable and oil was increased from January to May 2008. The citizen of those countries which have a low per capital income and highly dependent on import, high import bills and high food prices was become big challenges for the country, specifically for those countries which have limited foreign exchange and high food uncertainty.

The factors which increase the food prices and other consumer items, food consumption expansion, bad weather, low investment, high oil price, low production activates and transport cost, under cultivation, weak dollar, and speculative activities and trade policies also reason for high prices [Demeke et al ,2009]

According Saif (2008) in Arab countries the food prices was skyrocketed in 2007 because most of the food products are import from other countries. In short run they have no opinion to control this situation. Oil producing countries can control the inflation in the food price because they have massive revenue, non-oil producing Arab countries have not yet any plan to control this situation, these countries citizen are living below and just at poverty line.

The price should be control through trade oriented, customer oriented, and producer oriented strategy (Demeke et al, 2009). Develop agricultural sector through investment and market accessibility, training and educating farmers. Providing the basic facilities to the rural citizen to prevent migration and expand rural agricultural sector. Grow the energy sector to reduce the cost of energy through different technique generate energy through wind turbine. Bring more investor in food market in Arab countries (Saif, 2008).

Wasti (2011) In Pakistan per capital income $1051 in 2011, there is increase in per capital income as compare to 2010 is 0.4%. But that increase is not sufficient because on the other side of picture the prices of basic items are going the sky scraping. According to Federal Bureau of Statistics the inflation rate is 13.9%.

The appendix -2 related the prices of the consumer items on the average base. The tables are shown in the appendix which is related to the last one decade; in all these tables the prices of each commodity are shown which essential necessary for the community. These tables demonstrate price levels of each commodity are in the rising trend, therefore no decreasing trend in the price levels of the commodity so that is establish there is rising cost of living in Pakistan. The rising cost of living is increasing more sharply from last five years because price levels of the commodity are in a sky- scarping trend in the Pakistan (Economic survey 2010-11).

Third, the cost of living also affected by the population /family size. When the family size/ are rapidly increasing, the demand of the family will be increase if one person support the family it is difficult for him to fulfill the requirement of the family the living cost is increase rapidly, the rapid growth in population also increase prices due to too much demand for goods and services (Bongaarts, 2004). Cebula and Richard (1980) said that rising cost of living and population has positive relationship. Whenever increase in the population the price level of the commodity is also increase. The middle class families of Asian are the fastest emergent population cluster in the world. In 2000 the middle class families’ population of Asian countries was 1.4%of global population and 2.1% of global income, and should be increase in 2030 population would be 8.9% and income 7.7% of global income (Dyck et al, 2009). Family growths of developing countries are much faster than the family growth in developed countries.

The Government of Pakistan announced that four persons in the family are the admirable for family and sound for the country because earner can support the family easily and the government can provide the opportunities to his race (Bongaarts, 2004). The dynamic increase in the Asian families’ size in the dynamic increase in the consumption of the families because every person of family wants basic necessary items for them so most of the family not be able to provide them like Pakistan, Indian, Bangladesh, Sri lank are those countries in which the families size is bigger than their income size (Dyck, et al 2009).

According to World Bank and IMF(2005) the new generation of Asian countries like Pakistan, and Indian changing their life style the know the income source are limited so we should do family planning because country like Pakistan the economy situation is not very well so we should limited our family for our bright future. Ashford said in (2009) the population size of the country can be reduced through unintentional pregnancies, family planning, reduce the birth rate give the better and technical education to the women and provide the opportunities for the job to increase the income level of the family and delay or gap in the pregnancies.

The responses of community against the rising cost of living, and the community fulfills their requirements through different channels like migrate from one city to another do more than one job, better job opportunities (Felipe, 2009). The rise in the cost of living encourage the migration, migration within the countries and from one country to another country are occur due to rising cost of living within the country. Individuals and families migrate to the area where lot of opportunities to meet their obligations (Ahmad, Gulzar, 2007). Castro said in (2009) the people migrate to USA due to better economy and political stability in the country. There is rising living cost but there are lots of opportunities for the migrated peoples as compare in USA. China is the major provider of migrated labor due to this reason now in Chain there are storage of labor. Chinese polices makers have stop the flow of migration to the other countries especially in these immigrant mostly farmer are migrated to the other countries for the better living standard. There is decline in the production of agriculture sector of Chain (Brauw, Talyor, Rozella, 2001).

Migration with in the country means rural citizen are migrate to urban areas which creates worse result, the extra burden on the cities which craft problems for the locals like increase in the prices of the communities, house rent, build the gap between the income level of the urban and rural households, and political turmoil (Yang, 1999) Some time migration is not done by the rising cost of living. In Chain migration is occur due to their preeminent future because in the some rural area of chain is not well developed the health, children education, basic food items, electricity and many more is not available for the rural citizen so the migrate to the urban area or to the other countries (Yang, Salehi, Kats, Yau, Ashley, 2006).

Migration decision is not only the decision of one individual this is the decision of a whole family, that one person or full family migrate to the other region because whole family are facing the rising cost of living. The migrate for long time or short time to earn more and more money that their rest of families member spend better life and save money for future and meet the obligation against the rising cost of living.(Brauw et al, 2001).

Migration decision are mostly influenced by the income level and economy situation of the family and the country. When there is rising cost of living, the one earner income are not sufficient to fulfill the need of the family so individual or family migrate for better living standard and fight with the rising cost of living (Kennan, Walker, 2003). The origin of mankind migration is the most significant factor to improve the economy and eminence of life of people in the country and outside the country. The people move to that region where privileged real income and control cost of living and fight with the rising cost of living through their respectable incomes (Ozgen, Nijkamp, Poot, 2009). Ahmad and Gulzar said if government makes the policy that minimum income level are same for all people in the country the people migrate those cities where cost of living is low and value of income is high, means that there is decrease cost of living and migration in do more.

In USA the mostly community members do multiple jobs due to high cost of living and the low income level. The individuals who include in doing multiple jobs are young bachelors and newly married couples, the teenagers do part time jobs with their education (Castro, 2009). Ostrosky said in (1983) in USA the householders are not be proficient if they do single job that’s why in USA the householders mostly do multiple jobs because cost of living so high. In middle class families of USA the children become adult they bear their own expensive due to rise in the cost of living. In Asian countries last three decades the multiple job trend are increasing day by day because the Asian countries are facing the same dilemma which was faced by the western countries the rising cost of living (Henderson, Vernon, Shalizi, Zmarak, Anthony, 2001).

In Pakistan the price of basic commodity is raising and salary level is not increasing as the prices level are increasing, the community members are looking those channels in which the meet their requirement .the multiple jobs is the best option to increase the income level and meet the demand of the products price (Husain, Rashid, 2006). The most significant reason for doing multiple jobs is the pay or salary level, salary is the only weapon against the fighting with rising cost of living. When your weapon is empty or insufficient bullets in the weapon you cannot fight with your enemy. So fighting with the rising cost of living you must possess handsome income level in this versa economy situation the community members do multiple jobs to achieve better life standard (Rehman, 2009).

The community members have another opportunity to show resistant against the rising cost of living is the job hopping (Lee, Geraanart, Weller, Trevor, 2008). Rehman said (2009) the job hopping means the employees change their job for no reason just for fun they do job hopping. The mostly job hopping occur due to less opportunities in the present job the employee turn to that job where they have better future opportunities and where their future is secure (Romero, Cruthirds, 2009). The job hopping are faced by every organization, if the organization are paid incentive to the employees on the different events like rewards on the attendance and bonuses the job hopping is not be eliminate because these feature are so ordinary they do not distinguish the organization and persuade the employees to stay with them.(Miller, Hom, G-Mejia, 2001).

The job hopping begin when employees feels that the present income level is not sufficient to overcome the rising cost of living then he search for the other job opportunities to survive in the rising cost trend (Rynes, Gerhart Parks, 2004).

Research Hypothesis

Following hypothesis is set to be evaluated:

H1: The cost of living rise during the last three years

H2: The monthly expenses rise during the last three years

H3: The community members migrate to another city due to rise in the cost of living.

H4: The community members do multiple jobs due to rise in the cost of living.

H5: The community members do job hopping due to rise in the cost of living.

H6: The community members give preferences to the basic commodity items on

luxuriously items due to rise in the cost of living.

Research Methodology

The sample chosen 150 responded for the comprehensive questionnaire from six district of Khyber Pakhtunkhwa. The criteria for selection of a respondent, the respondents run their families and must be job holder. The randomly selected 150 responded included government servants, doctors, businessmen, journalists, professors, bankers, and shopkeepers. The respondent’s belong to the different community of six district of Khyber Pakhtunkhwa. In this six disttrict include Peshawar, Charsada, Mardan, Bannu, Nowshehra, and Kohat

Results and Analysis

The responses of the respondents are described through questionnaire which are dispense among the selected 150 respondents. The questionnaire carries 19 questions and in this 19 questions hypothesis are include in the shape of question. The questionnaire gathers the responses of the respondents and on these gather responses through questionnaire applied statistical tool like mean, standard deviation, and variance. The statistical tools are calculated through SPSS 19 edition software Excel 2007. T one tail-test is used to acceptance and rejection of hypothesis, the “t” statistical value calculated through mean standard deviation and μ. The calculated “t” statistical value is more than +1.645 than accept the hypothesis and when less than -1.645 reject the hypothesis.

The table-1 is computed through Microsoft Excel 2007 edition. The data is placed in the table is gather from the questionnaire. The table consists on items like Gander, Age, Income range, Save, Saving range, and Expenses range; the other parts of table are respondent’s data and the responses in the form of percentages.

This table shows the response of KHYBER PAKHTUNKHWA community about their yearly activities related to the consumption of the income. Previously in the methodology 150 respondents are mention, to the know the responses of community for research of Rising Cost of Living in the KHYBER PAKHTUNKHWA in the Current Regime, this table show the response.

In table, 91% are males and 9% are females, in which 60% are married and 40% are unmarried respondents. In the age range section the 43% of respondents belongs to the age group of 20-30 which is the highest partition in the age group, rest off other age range have the respondents are 29%, 20%, and 9%. Income section is the most important section and tells that who much one respondent earn in the month. The 26% respondents are able to earn more than 42000Rs per month means 39 individuals or householder’s income of the month are more than 42000Rs which are the highest in the income section. In income section 23% of respondents earn income from 21000-28000Rs range between per month, which are the second highest in the income section. The 6% of respondent’s income are less than 7000 per month, which show the poorer middle class families earning. The other income range groups belong to the lower middle class, middle class, upper middle class, and high upper class. The 9% income earned in the month by lower middle class, the 17% income earned by the middle class families, 23% and 9% income are earned by the upper middle class. The 11% and 26% income are earned by the high upper class. Saving section in table

66% of respondents are said that they are saved money for their future and 34% of the respondents are said no or hide their saving. The saving section further divides in to saving range this research study that those respondents are said that we are not saved money for future but in saving range the mark on different options that the save money for future. The research examines those respondents which belongs to the high upper class and upper middle class means income level is high or earned more income in the month like more than 42000Rs, they marked on the high saving range like 9000 – 12000 and 12000 – 15000Rs. These both range have the highest response of the respondents, 9000 — 12000Rs range have 26% respondents save money for future which are the highest percentage of response of the respondents, and 12000 — 15000 range have the 11% respondents save money for their future benefits. The saving range less than 3000 having 23% responses of the respondents, which shows that the community have a very scare income level to save money and they are facing hand to mouth situation mostly are the poorer middle class and the lower middle class families. The other saving ranges has a same level of response of the respondents is 20%, this response belong to the middle class and upper middle class families.

The expenses section of table shows, the respondent’s behavior towards their expenses of the community. The research shows the respondents utilization behavior; the respondents spend their money on their food able items they spend 60% of their income on the food items. This research shows another point that those respondents having a high income level the expenses level of those respondents are high. In expenses range 20000 — 25000Rs are the range where 43% of respondents are lying which is the highest range in the expenses range section. The high upper class in the society not carries lot of peoples so in the research the respondents of that class are not so much selected, response of that class regarding expenses is low which is 29% against the expenses range of more than 25000Rs, means the respondents of that class is low the response is low.

The table – 2 computed through SPSS 19 edition and Microsoft Excel 2007. The SPSS computed hypotheses data and originate the result of 150 respondents. The SPSS evaluate Mean, Standard Deviation, and Variance of each hypothesis data, which further help to find out the t-statistical value.

The Microsoft Excel 2007 is used to calculate t-statistical values for each hypotheses. The T- one tail test is applied on the each hypotheses which determine the t-statistical value, as earlier mention that mean, standard deviation, and variance is used to find out the “t” values. The “t” values calculate through this equation t= m-μ/S.D for each hypotheses. The table – 2 provides the base for the following table’s calculation. The following tables consist of H0 = μ and μ=3, number of hypothesis like H1, mean, standard deviation and total number of respondents which is 150. Microsoft Excel 2007 is used for the calculation of t-statistical values for each following table through this equation

First hypothesis as stated above is the agreement of the cost of living has been rise during the last three years, the result show in table-1 our null hypothesis is μ=3 which clarify the neutrality of statement and “μ” place for the population mean but our alternative hypothesis μ>3 show that the respondents approach is towards agreement for the statement where our estimated mean is 4.01, Standard Deviation is1.277, number of observation is 150, and standard t-statistics is +1.660744 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics +1.660744 is more than tabulated value of t which is +1.645 under the 0.05 level of significance following one-tailed testing. Therefore we accept H1 that cost of living has been rise during three years.

Second hypothesis as mentioned above is the agreement of the monthly expenses rise during the last three years, The result show in table-2 our null hypothesis is μ=3 which clarify the neutrality of statement and “μ” set for the population mean but our swap hypothesis μ>3 show that the respondents approach is towards agreement for the statement where our estimated mean is 4.41, Standard Deviation is 1.414, number of observation is 150, and standard t-statistics is +1.780727 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics +1.780727 is more than tabulated value of t which is +1.645 under the 0.05 level of significance following one-tailed testing. Therefore we accept H2 that the monthly expenses raised during the last three years.

The first two hypotheses H1 and H2 accept, so that indicates the community is facing the rising cost of living trend, the acceptance is encouraging the research.

For H3

H0: The community members do not job hopping due to high living cost.

H3: The community members do job hopping due to high living cost.

Third hypothesis declared above is the agreement of job hopping due to Rising Living Cost the result shows in the table-4 our null hypothesis is μ=3 which explain the neutrality of statement and “μ” place for the population mean but our switch hypothesis μ<3 show that the respondents approach is towards agreement for the statement where our estimated mean is 2.64, Standard Deviation is0.856 , number of observation is 150, and standard t-statistics is -0.86467 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics -0.86467 is less than tabulated value of t which is -1.645 under the 0.05 level of significance following one-tailed testing. Therefore we accept H0 that is community members do not job hopping due to Rising Living Cost.

For H4

H0: The community members do not give preferences basic commodity items on luxuriously items due to high living cost

H4: The community members give preferences basic commodity items on luxuriously items due to high living cost

Four hypothesis stated above is the agreement community give preference basic commodity items on the luxuriously items due to Rising Living Cost the result shows in the table-5 our null hypothesis is μ=3 which clarify the neutrality of statement and “μ” place for the population mean but our switch hypothesis μ<3 show that the respondents approach is towards agreement for the statement where our estimated mean is 2.56, Standard Deviation is0.881, number of observation is 150, and standard t-statistics is -0.84522 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics -0.84522 is less than tabulated value of t which is -1.645 under the 0.05 level of significance following one-tailed testing. Therefore we accept H0 that community members do not give preferences basic commodity items on luxuriously items is due to Rising Living Cost.

For H5

H0: The community members do not migrate to another city due to high living cost.

H5: The community members migrate to another city due to high living cost.

Fifth hypothesis as mentioned above is the agreement of migration due to Rising Living Cost the results shows in the table-2 our null hypothesis is μ=3 which indicate the neutrality of statement and “μ” represents the population mean but our alternate hypothesis μ<3 indicate that the respondents attitude is towards agreement for the statement where our estimated mean is 2.30, Standard Deviation is 1.075, number of observation is 150, and standard t-statistics is -0.490 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics -0.0490 is less than tabulated value of t which is -1.645 under the 0.05 level of significance following one-tailed testing. Therefore we accept H0 that is community members do not migrate to another city due to Rising Living Cost.

For H6

H0: The community member’s do not perform multiple jobs due to high living cost.

H6: The community members do multiple jobs due to high living cost

Six hypothesis stated above is the accord of multiple job due to Rising Living Cost the outcome shows in the table-3 our null hypothesis is μ=3 which show the neutrality of statement and “μ” stand for the population mean but our swap hypothesis μ<3 show that the respondents mind-set is towards agreement for the statement where our estimated mean is 4.36, Standard Deviation is 0.606, number of observation is 150, and standard t-statistics is -0.5905 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics -0.5905 is less than tabulated value of t which is -1.645 under the 0.05 level of significance following one-tailed testing. Therefore we acknowledge H0 that is community members do not perform multiple jobs due to Rising Living Cost.

Findings

The findings of Community Response to Rising Cost of Living in the Khyber Pakhtunkhwa in the Current Regime, this study shows that the community are facing the rising cost of living in the Khyber Pakhtunkhwa as similarly the other parts of the Pakistan and world. The conclusion of study is draw on the basis of the computation and analysis that indicates in the Khyber Pakhtunkhwa the cost of living is a rising from last four to five years. The study is able to say that community is facing rising cost of living in the Khyber Pakhtunkhwa.

The study first select sample of 150 respondents from six districts of Khyber Pakhtunkhwa, the respondents belong to the different classes of the community. All the 150 respondents are the job holders related to the different profession. Secondly the questionnaire is prepared for the study to obtain opinion about the rising cost of living in Khyber Pakhtunkhwa from the selected respondents. In questionnaire six research hypotheses are placed in the shape of questions regarding the rising cost of living and the response of the respondents against the rising cost of living. The six research hypotheses are the following

The cost of living rise during the last three years

The monthly expenses rise during the last three years

The community members migrate to another city due to rise in the cost of living.

The community members do multiple jobs due to rise in the cost of living.

The community members do job hopping due to rise in the cost of living.

The community members give preferences to the basic commodity items on luxuriously items due to rise in the cost of living.

The first hypothesis, that during the last three years the cost of living has been risen; through computation and analysis of the respondent’s data, and applied “t one tail test”. The first hypothesis provides evidence through calculation that there is a rise in the cost of living during the last three years and the respondents agree to this statement. The calculation of first hypothesis in the result analysis chapter in the above table-3 our null hypothesis is μ=3 which explain the neutrality of statement and “μ” place for the population mean but our unconventional hypothesis μ>3 show that the respondents approach is towards agreement for the statement where our estimated mean is 4.01, Standard Deviation is1.277, number of observation is 150, and standard t-statistics is +1.660744 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics +1.660744 is more than tabulated value of t which is +1.645 under the 0.05 level of significance following one-tailed testing. Therefore we accept H1 that cost of living has been rise during three years. So t-statistical value is find out this equation t= m-μ/S.D through Microsoft Excel 2007. The literature about the rising cost of living is agreed with the computation of the hypothesis, that there is the rising cost of living in the Khyber Pakhtunkhwa.

The second hypothesis during the last three years monthly expenses are rise; through computation and analysis of the respondent’s data, and applied “t one tail test”. The second hypothesis provides an encouraging result that there is rise in the monthly expenses during the last three years of respondents. The respondents are concurring with the statement. The calculation of second hypothesis show in above table-4 our null hypothesis is μ=3 which clarify the neutrality of statement and “μ” set for the population mean but our substitute hypothesis μ>3 show that the respondents approach is towards agreement for the statement where our anticipated mean is 4.41, Standard Deviation is 1.414, number of observation is 150, and standard t-statistics is +1.780727 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics +1.780727 is more than tabulated value of t which is +1.645 under the 0.05 level of significance following one-tailed testing. So accept H2 that the monthly expenses raised during the last three years. There is positive relationship between the literature and the computation and analysis of the respondent’s data. That everywhere in the world and other part of the country Pakistan the monthly expenses and rising cost of living in the rising trend.

The third hypothesis, that community members do job hopping due to rise in the cost of living; in the study through calculation and analysis and applied t one tail test on the respondents data, the research accept null hypothesis because the respondent are not agree with hypothesis statement mention above. The null hypothesis stated that, community member do not job hopping due to rising cost of living. The third hypothesis result above in table-5.Our null hypothesis is μ=3 which explain the neutrality of statement and “μ” place for the population mean but our switch hypothesis μ<3 show that the respondents approach is towards agreement for the statement where our estimated mean is 2.64, Standard Deviation is0.856, number of observation is 150, and standard t-statistics is -0.86467 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics -0.86467 is less than tabulated value of t which is -1.645 under the 0.05 level of significance following one-tailed testing. So accept H0. The literature about the job hopping is differing from the output of the analysis and the computation. The literature said that there is rising cost of living born the job hopping the householder cannot afford that job where he not is able to fulfill his requirement in which he have less opportunities to grow his salary and the other benefits ,so he do job hopping. But in contrast in this research through computation and analysis of respondents data are differing from the literature. The difference between the literature and the result is occurring due to change in the rational approach, because in our country there is a very less job opportunity because of economy situation and over and under employment.

The four hypothesis that, the community members give preferences, basic commodity items on luxuriously items due to rise in the cost of living. The result show above in table-6 the chapter of result and analysis in this our null hypothesis is μ=3 which clarify the neutrality of statement and “μ” place for the population mean but our switch hypothesis μ<3 show that the respondents approach is towards agreement for the statement where our estimated mean is 2.56, Standard Deviation is0.881, number of observation is 150, and standard t-statistics is-0.84522 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics -0.84522 is less than tabulated value of t which is -1.645 under the 0.05 level of significance following one-tailed testing. Therefore we accept H0. The H4 and literature for community members give preference are the same but when the computation is done on the respondent’s data the null hypothesis is accept that, the community members do not give preferences basic commodity items on luxuriously items due to rise in the cost of living. The thought that is not the luxurious items now that are become the part of daily routine without these items they cannot survive, and one another reason it become the social status symbol, respondents or individual can sacrifices the basic commodity but cannot sacrifices the use or consumption of the luxurious items because it is consider a social status symbol.

The fifth hypothesis stated that, community members migrate to another city due to rise in the cost of living; the literature about the community migration is suggested that migration is occurring on the basis of the rising cost of living (Brauw, Taylor, Rozelle, 2001). In this research the respondents disagree with the fifth hypothesis statement, because the society members of Khyber Pakhtunkhwa are prefer to live with their families due to family or society norms. The can survive in the limited income but cannot migrate the whole family or any family individual. They prefer to live in the home town and with in town they search for a those ways to increase their income level to fight with rising cost of living, In the contrast of other parts of the county. The computation of hypothesis fifth are shown in the above table-7 our null hypothesis is μ=3 which indicate the neutrality of statement and “μ” represents the population mean but our alternate hypothesis μ<3 indicate that the respondents attitude is towards agreement for the statement where our estimated mean is 2.30, Standard Deviation is 1.075, number of observation is 150, and standard t-statistics is -0.490 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics -0.0490 is less than tabulated value of t which is -1.645 under the 0.05 level of significance following one-tailed testing. So accept H0. The null hypothesis is approved that community members do not migrate to another city due to rising cost of living.

The sixth hypothesis stated that, community members do multiple jobs due to rise in the cost of living; through computation and analysis of respondent’s data the above statement is rejected and the null hypothesis is accepted. The result of hypothesis is show in the analysis chapter on table-8, our null hypothesis is μ=3 which show the neutrality of statement and “μ” stand for the population mean but our swap hypothesis μ<3 show that the respondents mind-set is towards agreement for the statement where our estimated mean is 4.36, Standard Deviation is 0.606, number of observation is 150, and standard t-statistics is -0.5905 following traditional t-test with the estimator = estimated mean – population mean/ Standard deviation. Hence our t-statistics -0.5905 is less than tabulated value of t which is -1.645 under the 0.05 level of significance following one-tailed testing. So accept H0 that is community members do not perform multiple jobs due to Rising Living Cost. The null hypothesis accepted because the community members of our Khyber Pakhtunkhwa society are not willing to perform the multiple job they give their rest of time to their family and friends as compare to western countries the prefer to do multiple job or part time jobs. It is a contrast between the society of western countries and eastern countries and difference between the behaviors of the society members.

Conclusion and Discussion

As the cost of living increasing day by day, the community of Khyber Pakhtunkhwa is responding greatly to it. The rising cost of living occur when the income level is low and price level is above then the income level and in the situation of Khyber Pakhtunkhwa the cost of the commodities is rousing from last five years. This research determines that the community of Khyber Pakhtunkhwa is facing the rising cost of living along with the whole world. But on the other side of picture the responses or attitude of the community against the rising cost of living are different from the other communities in the other parts of the country as well as from the world. This study identify the community stance against the rising cost of living and this will grant aid to the policy makers, individuals and householders for a better policy making and to have better living standard. This study proved that the community members do not migrate to another city due to rise in the cost of living. They do not go for multiple jobs and job hopping due to rise in the cost of living. The community members do not give preferences to the basic commodity items on luxuriously items. But in reality, the community members prefer to do multiple jobs and wait for the opportunity to get better job to overcome the rising cost of living in Khyber Pakhtunkhwa. The community members also give preference to the basic commodity items rather than giving preference to the luxurious items because it is difficult to cope with the rising costs. In the light of research, the government can also devise their policies through which the government can provide better job opportunities to the community members and constructive business environment for those individuals who are related to the business sectors.