Share This Article:

Economic Definition of real wage. Defined.

Offline Version: PDF

Term real wage Definition: The inflation-adjusted purchasing power of the nominal wage. The real wage is commonly derived by dividing the nominal wage by the price level, indicates the physical quantities of goods and service that can be purchased with the nominal wage.

 

« real purchasing power | real-balance effect »

Permalink: https://glossary.econguru.com/economic-term/real+wage

Alphabetical Reference to Over 2,000 Economic Terms