real income

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Related to Real wage: Money Wage

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.
Collins Dictionary of Sociology, 3rd ed. © HarperCollins Publishers 2000
References in periodicals archive ?
The equation is clear: For the government's poverty alleviation policies to work, real wages must increase as a result of increased labor productivity.
In Eastern Europe, real wages are forecast to rise by 2 per cent, higher than last year's 1.4 per cent, while in Western Europe, inflation-adjusted real wage increase will be approximately 0.7 per cent, down from the predicted 0.9 per cent last year.
Expected impact on the notes' rating of increased real wage decline (class A1/A2/B)
It showed which local authority areas have suffered the biggest hit to real wages - take home pay once the cost of living has been taken into account - since the 2008 financial crisis.
In the last 20 years, average real wages have almost tripled in emerging and developing G20 countries, while in advanced G20 countries they have increased by just 9 per cent, the report shows.
In a briefing on Monday, World Bank Philippines senior economist Rong Qian said there was zero real wage growth in the country between 2000 and 2016, which she found unusual for a developing country.
In the modern activities, therefore, the real wage consistently lagged behind labour productivity growth.
It added that, due to higher food and fuel prices over the coming year: "In Italy, Spain, the UK, Belgium, Finland and Cyprus, workers will even have to expect real wage losses in 2017."
The increase in real wage gap between non-union members in unionized enterprises and workers in enterprises without any union has been higher for white-collar workers than for blue-collar and pink-collar workers.
According to new research by the Economic Policy Institute, in 2015, the racial wage gap stood at 26.7 percent, with whites taking home an hourly real wage of $25.22 on average, compared to $18.49 for blacks.
where Y is real GDP, L is labor, K is real capital stock, w(=W/[P.sup.Y]) is the real wage and r(=R/[P.sup.Y]) is the real user cost of capital, and PY is the price index used to deflate GDP.