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Nominal Wages And Real Wages - GitHub Pages
Difference Between Real Wage And Money Wage In Points
Difference Between Money Wage And Real Wage Statistics
Differentiate Between Money Wages And Real Wages

The AAUW has now joined ranks with serious economists who find that when you control for relevant differences between men and women (occupations, college majors, length of time in workplace) the wage gap narrows to the point of vanishing. The 23-cent gap is simply the average difference between the earnings of men and women employed “full. The Real Minimum Wage: Planet Money: The Indicator from Planet Money Many states and cities have their own minimum wages, which are higher than the federal minimum of $7.25 per hour.

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Consider the data chart above:

The data shows an index of Nominal (Money) and Real Average Earnings in UK Labour Market from January 2005 through to February 2017.

The base year for the calculation is 2015 because the average index value for 2015 = 100

Nominal Wages And Real Wages - GitHub Pages

Difference Between Money Wage And Real Wage

Average earnings are made up of

Basic pay
Overtime payments
Bonuses and other additions to pay from work

Notice how the nominal value of average earnings has been rising steadily each year, but when we take into account the fact that consumer prices have been rising as well, then the increase in real average earnings is very low indeed.

Difference Between Real Wage And Money Wage In Points

In fact over the period shown there has been barely any significant increase in average real earnings for people in work.

Difference Between Money Wage And Real Wage Statistics

The chart shows average earnings so some occupations and industries will have seen above average rises in real pay whereas other jobs (such as civil servants whose pay has been frozen in nominal terms in recent years) will have suffered a fall in their real incomes.

Differentiate Between Money Wages And Real Wages

It is important to make a distinction between the money value of someone's pay and the real (inflation-adjusted) value because changes in real incomes are significant when we assess changes in average living standards.