Nominal Wage

Nominal Wage

 

under socialism, the amount of money that production and office workers receive for their labor according to quantity and quality. Under capitalism, the nominal wage is the sum of money that an employee receives for his or her labor power.

The nominal wage represents the wage level regardless of any change in the price of goods and services, thus differing from real wages. The latter is determined by how much of the means of existence the worker is able to purchase with the nominal wage. In capitalist society an increase in the nominal wage is often associated with constant or decreasing real wages.

In the USSR, raising the nominal wage is one method used to increase real wages and to improve the well-being of all working people. During the years of the eighth five-year plan (1965–70), the nominal wage grew by 26 percent, with further increases anticipated. Beginning in 1972, the minimum wage is being raised to 70 rubles in the production sectors of the national economy, with simultaneous increases in average wage rates and salaries in all occupational categories. An increase in nominal wages enhances the material incentive for workers to improve their output and to raise the efficiency of public production.

REFERENCES

Marx, K. Kapital, vol. 1. K. Marx and F. Engels, Soch., 2nd ed., vol. 23.
Materialy XXIV s’ezda KPSS. Moscow, 1974.
Kapustin, E. I. Kachestvo truda i zarabotnaia plata. Moscow, 1964.
Kunel’skii, L. E. Sotsial’no-ekonomicheskie problemy zarabotnoi platy. Moscow, 1972.

L. S. KHEIFETS

References in periodicals archive ?
The budget will also face additional spending needs from the (one-off) costs related to next year's elections and a nominal wage bill increase now projected to be slightly higher than envisaged under the program, while earmarking of revenues for statutory funds continues to reduce budgetary flexibility," he added.
Jason Faberman and Alejandro Justiniano (Chicago Fed Letter, Federal Reserve Bank of Chicago, April 2015) argue that, because quits are procyclical--meaning they rise during economic expansions and fall during recessions--the worker quit rate, measured as a ratio of total quits to employment for a specific period, can be used to predict nominal wage growth and inflation pressures.
The players agreed to their usual wages for the first week or so when games were played and then there was a nominal wage for a week or two until June 10 came around.
The report says: "Negative inflation for part of this year and a steady pickup in nominal wage growth to 1.
In the coming years, the EY ITEM Club expects nominal wage growth to continue to accelerate but, underpinned by continued strong growth in the supply of labour, will remain short of the pace achieved in the decade prior to the financial crisis.
The jail inmates serving their term are given a nominal wage for the work in jail.
But one theory I should have mentioned involves what economists call "downward nominal wage rigidity.
We look at different data sources, variations across major groups in the workforce and explore in more detail the evidence for nominal wage stickiness.
Elsewhere I have argued that the optimal monetary policy would stabilize aggregate hourly nominal wage growth (Sumner 1995).
These measures included a reduction in the size of the civil service by about 13 percent, further downsizing by attrition, wage cuts for elected and appointed officials, and a two year nominal wage freeze.
The report says: "The average weekly nominal wage for a services worker was PS437 in 2010, compared with PS524 for a manufacturing worker.
Saturday UK: Labour Market - the main news from last month's labour market data was the surprise jump in nominal wage growth in April.