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Research Paper

Topic: Socio-Economic Problem of Class III and


Class IV Employees

Submitted to:

Submitted by:

Aysha Sami Latif

Faisal Rehman Sabri


MBA (General One & Half Year)

Institute of Computer & Management Sciences,


Hayatbad Peshwar
University of Peshawar

Abstract
The present study was conducted to analyze socio economic problems of class iii and class iv
employees. The study carried out for explaining the arbitrating effects of a number of intellectual
variables (education level, satisfy with job, managing health problems, facing problem to educate
their children, face any problem in emergency condition due to low income) in a relationship
with monthly income. For the study unbiased questionnaire was used, with the help of 50
employees of university of Peshawar the data were gathered. Frequency and correlation were
used to analyze all the data. At the end the conclusion made that low income and less education
causes all socio-economic problems.

Introduction
Most of us live in comfort and security, but over one-fifth of the worlds population lives in
poverty. Around the world poverty appears when people are not able to achieve the standard of
living that is usual for their society. Today, standards of living vary greatly among nations;
however, the effects of poverty remain constant: hunger, homelessness, lack of education, and
resources to fulfill basic human needs.
Poverty is not only having no money. For those in developing countries it also is not having the
materials and resources to fulfill their basic needs. A person can be poor when they dont have
access to employment and basic healthcare, education and essentials like food, clothing and
water.
A study on poverty has brought Pakistan face to face with a reality that it will find hard to accept,
every third Pakistani is caught in the poor bracket i.e. some 58.7 million out of a total
population of 180 million subsist below the poverty line. This includes more than half the
population in the forever remote Baluchistan, 33 per cent in Sindh, 32 per cent in Khyber

Pakhtunkhwa and 19 per cent in Punjab. These are daunting figures. The purpose of this research
is find out a comprehensive picture of socio-economic problems of class ii and class iv
employees in Peshawar and judge the facilities provided to class iii and class iv employees of
Peshawar. In the research Statistical Package for the Social Sciences (SPSS) is used for finding
the result the various statistical techniques i.e. frequency and correlation and test i.e. reliability
test is used in this study. a pre tested questionnaire is used for the outcomes. For this purpose
employees of university of Peshawar were asked for their response for further results.

Hypothesis
H0. Lesser the income of the employees greater would be the severity of their problem and
lesser the education of employees greater would be their problem.
H1.

Greater the number of children, greater would be the economic and accommodation

problems of the employees.

Literature review

Mckee, A., F., is conducted to investigate the socio-economic problems as an option for the
poor. Refers to a trend, throughout the Judeo-Christian Bible, of preference being given to the
well-being of the poor and powerless of society in the teachings and commands of God as well
as the prophets and other righteous people. Jesus taught that on the Day of Judgment, God will
ask what each person did to help the poor and needy: "Amen, I say to you, whatever you did for
one of these least brothers of mine, you did for me. This is reflected in Catholic canon law, which
states, "The Christian faithful are also obliged to promote social justice and, mindful of the
precept of the Lord, to assist the poor. The variables used in this study are: socio-economic

problems e.g. education, health, unemployment, low social status, and poor. In these manners the
data is collected from Emerald group publications. A careful study and different tests are used for
the checking of the reliability of this data. In order of integration of different time series involve
in the study bound testing approach to co integration based on Auto Regressive distributed lag
(ARDL) is used to confirm the presence of relationship among the variables. This study is about
the socio-economic principle as in an option for poor which focus on; the modern form of this
new old concern, its relation to traditional socio-economic growth, the sense in which it called
for protection of the poor and marginalized, how surely it may demand reform of economic
structure and, its place in Christian message of evangelization and salvation.

The study had

shown that the preferential option for the poor has proved a fascinating newcomer to the kit of
socio-economic principle. This idea does not lead lucidly towards the application for policy and
structural approach. Unfortunately the widespread experience teached us that such economics are
soon drawn into necessary limitations of freer, highly industrialized and advancing economics of
the west and now the parts of Asia, and that the disadvantaged and the marginalized only assume
new forms; though harsh poverty, one must admit, has been typically ameliorated.

Deaton, A., (2000) is conducted to count the worlds poor most frequent problems and their
proper solutions. The variables used in this study are poors problems poverty, deprivation of
walth, education and democratic rights and solutions economic growth. In these manners the data
is collected from Princeton University All the data was collected from different survey all around
the world and World Development Report listed from different countries Eg. Thailand India and
many other.-The World Bank`s worldwide count of the poor has started from a common
international poverty line and counts the number of people in each country. The study shows that

the international poverty line at $1, $2 a day is converted into domestic currencies using
purchasing power parity exchange rates. The study conclude that bank should be backing away
from its current too concentrated focus on the income headcount number, and that the emphasis
should move to a much wider range of other measures, focusing on a wide range of deprivations
that are as, or more important than deprivation of income.
Kaplan, R., L., (2002) is conducted to study the Economic Inequality and Role of Law. The
variables used in this study are fewer wages, less pension, less health facility less amount of
vacations. In these manners the data is collected from different level people in America by
survey and from different government institution like Federal Reserve board the timber Industry.
This study shows that according to Kevin Phillips the author of Wealth and democracy a political
history of American rich; the increasing economic inequality of recent decades poses a
significant challenge to the U.S. legal system and its democratic processes. He contends that the
status quo is unsustainable and that plutocracy is where we are headed, if we are not already
there. What the future holds is not particularly heartening. Repealing the estate tax, creating
retirement funding and education incentives that primarily benefit financial elites, rejecting
universal health insurance, ignoring the silent crisis90 represented by the costs of long-term
care, and eliminating the redistributionist aspects of Social Security via privatization all of
these developments point toward more economic inequality, not less. This study shows that a
government should introduce a policy is needed if economic inequality is to be arrested and
democratic vibrancy restored.

Lemos, S., (2004) conducted a study to investigate the effect of the minimum wage on price. The
variables used in this study are: high labour cost reduces profit, low labor cost increase profit,

high labor caused high price. In these manners the data is collected from University of Leicester
and IZA Bonn. Five different methodologies used in this e.g. General equilibrium model
analysis, Philips curve estimation analysis, input output model analysis difference in difference
estimation analysis and regression analysis. This study contributes to the literature by offering an
input to the recent debate over the direction of employment effects of the minimum wage. With
employment and profits not significantly affected, higher prices is an obvious response to a
minimum wage increase. This study represents an important contribution to the literature because
it summarizes and critically compares over twenty price effect studies, providing a benchmark in
the overall reading of the above evidence on price effects, together with the evidence in the
literature on wages and employment effects is that the minimum wages increases the wages of
the poor, does not destroy too many jobs, and does not raise prices by too much.
Wei, S., J., (1999) is conducted to investigate the Corruption in Economic Development. The
variables used in this study are reducing domestic investment; reduce foreign direct investment,
over blown government expenditure, disorted composition of government expenditure,
education, health, infrastructure and public project. In these manners the data is collected from
business international index, international country risk guide index, and global competitiveness
report index transparency international index. This study is about the overwhelming statistical
evidence that countries with high corruption levels have poorer economic performance. There are
several channels through which corruption hinders economic development. The study concludes
a number of authors find that the more corrupt a country, the slower it grows. Culture plays a role
in determining what is considered a bribe versus a gift; the culture induced difference seems
small. There is no evidence to support the notion that corruption in Asia, East Asia included, is
any less harmful than corruption elsewhere. The fight against corruption has to be multi-fronted.

While laws and law enforcement are indispensable, countries serious about fighting corruption
should also pay attention to reforming the role of government in the economy, particularly those
areas that give officials discretionary power which are hot beds for corruption. Recruiting and
promoting civil servants on a merit basis and paying them a salary competitive to private sector
alternatives help to attract high quality, moral civil servants. International pressure on corrupt
countries, including criminalizing bribing foreign officials by multinational firms, is useful. But
the success of any anti-corruption campaign ultimately depends on the reform of domestic
institutions in currently corrupt countries.

Blair, G., Fair, C., C., Malhotra, N.,and Shapiro, J., N., (2012) conducted to investigate to
Combating militant violence, particularly within South Asia and the Middle East, stands at the
top of the international security agenda. The variables used in this study are poverty, corruption;
religious conflict and ethnic strife create opportunities for terrorists. In these manners the data is
collected from provincially representative survey in Pakistan. . In order of integration of different
regression involve in the study bound testing approach to co integration based on ordinary least
squares (OLS) is used to confirm the presence of relationship among the variables The study
concludes that the low income level people are supporting militants because of poverty n middle
level less supports the militant.

Chani, M., I., Pervaiz Z., Jan, S., A., Ali, A., Chaudary, A., R., (2011) conducted to investigate
the role played by economic growth and inflation in poverty reduction. The variables used in this
study are: poverty, economic growth, inflation, investment and openness of trade. In these
manners the data is collected from World Development Indicators (WDI) online data base of

World Bank. Ng Perron Test was used for the reliability of this data. In order of integration of
different time series involve in the study bound testing approach to co integration based on Auto
Regressive distributed lag (ARDL) is used to confirm the presence of relationship among the
variables. The study concludes that the entire variables are very much closely linked to poverty.
The study shows that economic growth and investment have reducing the poverty and on the
other hand inflation and openness trade increase the poverty level in the country.

Bassanini, A., Rasmussen, H., J., and Scarpetta, S., (1999) conducted this research is to
investigate the problems of unemployment and low pay amongst the low skilled and those with
little work experience are served in many countries. The variables used in this research are
unemployment, low pay, low skill, little work experience. The data is collected from four OCED
countries. The computable general equilibrium model is used to interpret the data. At the end the
result suggest that effectiveness of an employment conditional tax credit depends on a number of
key aspects including the ex-ante distribution of a market the labor supply elastic ties the tax
system as well as the non employment benefits. Where workers with higher earnings finance the
tax credits for the low paid produces better overall effects both in terms of total labor supply,
unemployment and welfare.
Heshmati, A., (2006) conducted a research is to show the relationship between poverty and
income inequality. The variables are used in this research are globalization, income inequality,
poverty indices, technology, economic integrated, principal components. The sample size is
amongst 62 countries and major data is collected from Foreign policy magazine. In regarding
statistical tool the correlation coefficient and regression analysis is being use. The results shows

that the Country face problem having low technology and not globalize with other country and
so that cannot enjoy economic benefits.

Chetta, P., Bhattacharyya, R., Gogoi, C., K., (2001) conduct a research to study the work of the
worker and the problems like labor exploitation, absenteeism. In this regards the data is collected
from two industries Namrup thermal power station and Assam petro chemical limited. The data
is collected from 100 respondents by interview and observation. The result of this research shows
that the young employees have less absentees and exploitation then the old age employees.

Pereira, P., T., and Matins, P., S., (2004) Studied the relationship between education and
inequality. The variable used in this study is education level, ability and skills and earning. The
data is collected from 15 European countries. The data were collected by survey and observation.
The ordinary least square regression was used. It conclude that the better the skill will give
benefits to the earning and better the education system and labor market institutions have great
impact on wage inequality.

Arias, O., Yamada, G., and Tejerinia, L., (2002) conduct a study to check the relation between
educations, wage inequality, return to education and earning difference of black and white
people. The purpose of this study is to investigate the family background, education and earning
of American. The survey is conduct to gather the data from Brazil. The statistical tool least
squares regression is used. The data is collected from 29000 house hold. It concludes that the gap
between black and white people wages were big enough. The second conclusion is that again
return to education not has any impact on wages.

Methodology
This phase explains the mechanics of the research study. It gives description of the universe,
sampling procedure, data source, and analysis techniques. The area of study is University Of
Peshawar. In random sampling we select 50 employees from class III and class IV (grade 1 to
16). The questionnaire was used as a tool for data collection. A questionnaire was prepared
covering and inquiring about all the necessary aspect of concern problem in the target area. The
questionnaire was pre-tested in the field and was modified accordingly. After collection of
complete data the result were shown through statistical analysis by using frequency and
correlation.

Result and discussion

Reliability analysis
In the first step reliability analysis take place by using SPSS the most common cronbach`s alpha
is used to check the reliability. The value of alpha should lie between 0 and 1.
Reliability Statistics

Cronbach's Alpha

N of Items
0.68

The cronbach`s alpha is valued at 0.68. The 0.80 is good scale in social research. The 0.68 shows
that variable will measure the concept.

Frequency
Table educational status and educational level

Education Status
Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

Literate

44

88.0

88.0

88.0

Illiterate

12.0

12.0

100.0

50

100.0

100.0

Total

Education level
Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

Primary

12.0

12.0

12.0

Middle

10.0

10.0

22.0

Metric

13

26.0

26.0

48.0

Graduation

18

36.0

36.0

84.0

16.0

16.0

100.0

50

100.0

100.0

Post Graduation
Total

The above table shows the education status and educational level. The 88% respondents were
literate and 12% respondents were illiterate. Further it shows that 26%responts were
matriculated, 36% were graduate, and 16% post graduated and 12% and 10% were primary and
middle respectively.
Findings

Majority respondents were literates.


Majority respondents were graduat

Monthly income

Table
Monthly income
Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

Less than 15000

12

24.0

24.0

24.0

15000-30000

21

42.0

42.0

66.0

30000-45000

12

24.0

24.0

90.0

45000-60000

10.0

10.0

100.0

50

100.0

100.0

Total

The table shows that 24% respondents were earning less than 15000 in a month, 42%
respondents were earning 15000-30000, 24% earning 30000-45000, and 10% respondents
earning 45000-60000.
Findings

Majority of respondents were earning 15000-30000 per month.

Face any problem in emergency condition due to low income


Tables
Face any problem in emergency because of low income
Frequenc
y
Valid Yes

Percent

Valid

Cumulative

Percent

Percent

40

80.0

80.0

80.0

No

10

20.0

20.0

100.0

Total

50

100.0

100.0

How meet problems in emergency condition

Frequenc
y
Valid By borrowing
By selling
property
Taking loan
Not applicable
Total

Percent

Valid

Cumulative

Percent

Percent

16

32.0

32.0

32.0

8.0

8.0

40.0

21

42.0

42.0

82.0

18.0

18.0

100.0

50

100.0

100.0

The above tables describes that the respondent were facing problems in emergency condition due
to low income and they are having that kind of situation how will they sort it out. 80% of
respondents reporting that they are facing problem in emergency condition and they are handling
it by taking loan from institutions, selling property and by borrowing from there fiends. 20%
were prepared for that sort of problems.
Findings

Majority of respondents were facing problems in emergency condition because of low


income.

Satisfy with job


Tables
Satisfy with job
Frequenc
y
Valid

Percent

Valid

Cumulative

Percent

Percent

Yes

34

68.0

68.0

68.0

No

16

32.0

32.0

100.0

Total

50

100.0

100.0

Why not satisfy with the job


Frequen
cy
Valid Low Income

Percent

Valid

Cumulative

Percent

Percent

13

26.0

26.0

26.0

6.0

6.0

32.0

Not applicable

34

68.0

68.0

100.0

Total

50

100.0

100.0

Low Social
Status

The above table shows that 68% respondent were satisfy with the job and 32% respondent were
not satisfy with the job because of low income and low social status.
Findings

Majority of respondents were satisfied with their jobs.

Health problems
Table
Manage health problem
Frequenc
y
Valid Yes

Percent

Valid

Cumulative

Percent

Percent

29

58.0

58.0

58.0

No

21

42.0

42.0

100.0

Total

50

100.0

100.0

The above table show that 58% respondent were managing their health problems positively other
42%of respondents having health problems.
Findings

Majority respondents managing their health problems.

Face any problem to educate your children


Table
Face any problem to educate your children
Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

Yes

24

48.0

48.0

48.0

No

23

46.0

46.0

94.0

6.0

6.0

100.0

50

100.0

100.0

Not Applicable
Total

The above table shows that 48% respondents facing problem in educating their children and 46%
respondents not facing that kind of problems.

Findings

Majority of respondent facing problem in educating their children.

Correlation
Correlation is statistical tool that can find the relationship between two or more t5han two
variables. The value of correlation range is +1 to -1. Both these values show positive and
negative relationship respectively. Zero shows no relationship in variables.

Table

Explanation
The above table show the correlation between monthly income, education level, how to meet
problem in emergency condition, satisfy with job, face any problem to educate your children and
health problems. The result of correlation shows that monthly income is positively correlated
with education level. When respondents have good level of income, they can build their
education level strong. They can bear all the expenses of their education and can avail the

opportunity. The relationship between monthly income and face problem in emergency condition
is positively correlated but the relationship is weak. When the income increases they will save
more and possibly overcome the conditions. The satisfy with the job is negatively correlated with
income. When income level is increase the satisfaction will increase. The health problem and
problem to educate their children is negatively correlated with monthly income. It is obvious that
when their increase in income that will help them to educate their child and solve their health
issues more positively.
The education level is positively correlated with problems face in emergency condition. When
respondents have good education level they will foresight these problems so they will always
prepare themselves to meet these problems positively. The education level is negatively
correlated with satisfy with the job. When the class III and class IV employees get themselves
well educated they will than get the real position in organization and they will than satisfy with
their jobs. The health problem and problem to educate their child is negatively correlated with
education level. When the employees were illiterate or have low level of education that caused
them health problem and problem to educate their child and this also caused of low level of
interest. The satisfy with job is negative correlated with face any problem in emergency
condition. Major number of respondent not meet their problems in emergency condition the
reason is that they are not getting enough to get hold all of these issues. The health problem is
negatively correlated problem face in emergency condition. The problem in educating their child
is positive correlated with face problem in emergency condition. Satisfy with job is positively
correlated with the health problem but negatively correlated with problem face in educating their
child. They were fulfilling their health need but having problem to educate their child. Mange
health problem is negatively correlated with educating their child problem.

Conclusion and recommendations


As the universe of the study was university of Peshawar and the selected sample size is 50, with
the help of different research techniques, collected some important information related to the
concerned areas of the study. On the basis of findings we are able enough now to draw some
conclusion for it. In this phase these findings and recommendations are summarized.
The current study proved the relationship between education level, monthly income, satisfy with
job, face any problem in emergency condition because of low income, manage health problems,
facing problem in educating their children.

Findings
1. Majority respondent are not well educated.
2. Majority respondent have low income level.
3. Majority respondent facing problems in emergency condition.
4. Majority respondent were satisfy with the job.
5. Majority respondent were managing their health problems.
6. Majority respondents were not able educate their child.

Conclusion
After all the finding we can easily conclude that H 0 is accepted. That lesser the income greater
will be severity of their problem, and lesser the education of employee greater will be the
problems. Most respondents have large families and number of dependent member so the
income is not that much sufficient to fulfill all the basic needs of all the member so than
problems start to raise that is why the poor people are getting poorer their child did not get the
deserve education. They are also have problem regarding their health, although the majority
respondent managing their health problems but the difference between majority and minority is
very less so health regarding problems also exist. Majority respondents facing problem in

educating their children and also face problem in emergency condition because of low income.
The respondents were not availing the opportunity because of low education level.

Recommendation
In this regards the recommendations will be that the employee would full medical facility will be
given to class iii and class iv employees. The pay rule should be revised by semi annually
because current salary is not enough to fulfill their basic needs. The government should put less
burden of tax on this level. They should discount the prices of the basic utilities. The institution
or management would be much flexible while dealing with class ii and class iv. The less
expensive advance education system should be developed by the government for this level. The
quota in government educational institution has to increase for them. The funds for class iii and
class iv should be utilize in positive way. Government should take proper interest in their
matters.

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