real income


Also found in: Dictionary, Financial, Wikipedia.
Related to real income: Nominal income

real income

or

real wages

the value of the goods and services that can actually be bought with a given money income or given money wages. Thus while money wages may rise, real wages – measured in terms of the RETAIL PRICE INDEX – may fall, or vice versa, unless adjustments are constantly made to keep real incomes in line with inflation. The general tendency in Western economies has been on average for real wages to rise ahead of INFLATION, bringing numerous consequences, variously seen as benign or malign. However, the opposite tendency has also sometimes occurred, at least for some groups, with real wages failing to rise with inflation, leading to a real decline in living standards.
References in periodicals archive ?
What's gloomier is that the average monthly real income per household fell by 0.
Since price level ("cost of living") in a state is positively correlated with nominal personal income, it may be expected that interstate inequality in nominal income will be larger than that in real income.
He added: "Overall we think that the outlook for growth is pretty good with the increase in real income and wages starting to pick up as the labour market tightens.
In addition, the report found that the Middle East and North Africa will see average real income increases of 1.
In all 27 member countries, real income per capita would end up almost 5% higher on average.
The problem is that of low wages and falling real incomes for working class families, the Government is silent on this critical point.
The above material will be useful in what follows but of course, our focus is not on GDP; instead our focus is on the income generated by the market sector or more precisely, on the real income generated by the market sector.
The magazine's Top 10 Lowest Real Income regions included Springfield (No.
A stronger growth in consumption is expected towards the end of the year and thereafter, as the households' disposable real income is expected to grow and as higher house prices will also stimulate consumption.
Arab hydrocarbon producers earned around $450 billion from crude oil exports in current prices in 2010 but the real income was only about $352 billion, lower by nearly $98 billion, according to official data.
As seen in the last decade, Indian demand for gold will be driven by savings and real income levels and not by price.
Rising real income should result in workers contracting in labor markets for shorter work days and more days off.