What Does 'Real Wage' Mean?

Category: Glossary, Type: Career

The Meaing of Real Wage

The sum of values of goods and services that can be bought for given nominal wages in various comparable periods. The difference among the real and nominal wages results from a alter in buying power of money. The real wage is acquired by dividing the nominal wage by the cost of living index in a given period.

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Category: Glossary, Type: Career