Cost of living: understanding and assessment methods
In the Western tradition, the cost of living reflects such income, which provide a "decent living" in accordance with the established standards of consumption. In Russian practice, the cost of living reflects the level of income that provides a minimum power consumption (Уровень жизни..., 2007:2). Cost of living includes consumption expenditures for food, housing, transportation, utilities, health care and so on. For example, in U.S. by Census Bureau data, the Cost of Living index is a composite index. The nationwide average equals 100 and each index is read as a percent of the national average. The Cost of Living Index is calculated by each US metropolitan area (U.S. Census Bureau, 2012: 478) (Table 2).
The Consumer Price Index measures the average change over time in the prices of consumer goods and services that people buy for everyday living (United States..., 2007:1). Cost of living index of the territorial dimension is widely used to compare the standard of living in cities and regions.
There seems to be a general presumption that rural areas benefit from lower costs of living than urban areas (Kurre, 2003). These estimates find that the average urban resident pays more than rural residents for a broad basket of goods and services.
A very interesting finding was made, that university graduates are more concentrated in regions where the cost of housing is higher than other groups of population, as a result many graduates face a higher cost of living (Rienzo, 2010).
In the United States the Cost of Living Index measures the cost of buying a specific basket of goods and services in a large number of urban areas around North America (Kurre, 2003: 86). The Cost of Living Index model includes different demographic, social economic indicators.
The Consumer Price Index measures the average change over time in the prices of consumer goods and services that people buy for everyday living (United States..., 2007:1). Cost of living index of the territorial dimension is widely used to compare the standard of living in cities and regions.
There seems to be a general presumption that rural areas benefit from lower costs of living than urban areas (Kurre, 2003). These estimates find that the average urban resident pays more than rural residents for a broad basket of goods and services.
A very interesting finding was made, that university graduates are more concentrated in regions where the cost of housing is higher than other groups of population, as a result many graduates face a higher cost of living (Rienzo, 2010).
In the United States the Cost of Living Index measures the cost of buying a specific basket of goods and services in a large number of urban areas around North America (Kurre, 2003: 86). The Cost of Living Index model includes different demographic, social economic indicators.
To measure the cost of living in U.S. cities, the American Chamber of Commerce Research Association (ACCRA) index is using. This index helps to rank living standards and real wages across U.S. cities. In this index the regional prices are comparable to national prices taking into account the national consumption weight (Phillips, Daly, 2009: 4 - 9).
An experimental index developed in U.S. that uses Fair Market Rent (FMR) data to adjust for geographic differences in the cost of living. When the FMR index is used to adjust for cost of living differences, poverty is higher in metro areas than in nonmetro areas in terms of prevalence, depth, and severity (Jolliffe, 2006).
In the absence of a standard county-level cost of living indicator, the Self-Sufficiency Standard (SSS) was developed. Urban counties tended to have significantly higher costs of living (i.e., self-sufficiency wages) than rural counties (Unlocking Rural… 2007). SSS indicators are costs of food, costs of housing, costs of health insurance, costs of childcare and so on.
Another measure of the cost of living is a Retail Price Index that partially updates the national Retail Price Index with a regional housing index (Rienzo, 2010:1).
An experimental index developed in U.S. that uses Fair Market Rent (FMR) data to adjust for geographic differences in the cost of living. When the FMR index is used to adjust for cost of living differences, poverty is higher in metro areas than in nonmetro areas in terms of prevalence, depth, and severity (Jolliffe, 2006).
In the absence of a standard county-level cost of living indicator, the Self-Sufficiency Standard (SSS) was developed. Urban counties tended to have significantly higher costs of living (i.e., self-sufficiency wages) than rural counties (Unlocking Rural… 2007). SSS indicators are costs of food, costs of housing, costs of health insurance, costs of childcare and so on.
Another measure of the cost of living is a Retail Price Index that partially updates the national Retail Price Index with a regional housing index (Rienzo, 2010:1).