Wage
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Page Overview | Income and Substitution Effects | Female vs Male Behavior in the Labor Market | Opportunity Cost of Leisure Time | Works Used
Real Wage
The real wage describes the quantity of goods that the worker gets for a number of hours of labor. the real wage is the nominal wage adjusted to the level of inflation. It determines how much labor workers will want to supply in the economy.
Factors that Influence Real Wage
- wealth
- expected future real wage
- population size
- technology
- any change in the price level
