Investor Glossary-real wagesInvestor Glossary-real wagesInvestor Glossary-real wagesInvestor Glossary-real wagesInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Real Wages

The HTML to link to this page
 

In economics, real wages are the true value of wages relative to earlier periods, taking into account the effect of inflation. Real wages take into effect inflation for the purpose of more accurately measuring changes in purchasing power over time. In contrast to real wages, nominal wages do not take into effect the price level. For example, an organized labor agreement could include periodic modest pay increases based upon the consumer price index as a way to hold real wages constant. A nominal pay increase intended to prevent a decline in real wages is called a cost of living adjustment (COLA). Looking at real wages is necessary when considering economic trends over long periods of time, when the effect of compounding makes even modest levels of inflation important. Real wages is often more generally referred to as real income.



Rate this real wages definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: risk management, annual return, FTSE, dividends payable, implied volatility, Zero Cost Collar, inflation, open position, average price per share, 1031 exchange, option premium, quality assurance, current ratio, FICO score, ex-dividend date, liquidity ratio, labor relations, diluted share, margin rate, required rate of return, irrevocable trust, command economy, minority interest, EBITDA, cancelled check, APR, LIBOR, phantom income, deferred revenue, ex-dividend, real GDP, 401a, 1035 exchange, per diem, 144a, Key Rate Duration, stock split, debt service coverage, deferred tax, in escrow, limit order, VIX, wholly-owned subsidiary, covered put, retained earnings, balance sheet, reverse mortgage, class C shares, stock market close


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use