real income


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Related to real income: Nominal income

Real income

The income of an individual, group, or country adjusted for inflation.

Real Income

Personal, corporate, or national income after accounting for inflation. Comparing one's real income from year to year shows how much income has grown or shrunk after adjusting for how much the buying power of the money has been affected. Nominal income compares only raw dollar amounts and does not account for inflation. For example, if one's nominal income has grown 10% and the inflation rate is 3%, the real income growth is 7%. Real income is also known as real wages. See also: Real GDP.

real income

Income, as of a person, group, or country, that has been adjusted for changes in the prices of goods and services. Real income measures purchasing power in the current year after an adjustment for changes in prices since a selected base year. If money income increases more than consumer prices, real income increases. If money income increases less than consumer prices, real income declines. Declines in real income are unfavorable for those suffering the declines and for firms selling goods and services to them.

real income

see REAL WAGE.
References in periodicals archive ?
It may be seen that inequality in real income is much smaller than that in nominal income in terms of both L and T, and real-income inequality is a little over one-third of nominal-income inequality.
Such partners would thus experience a decline in real income per capita.
Thus the growth in real income over time can be explained by three main factors: t (Technical Progress or Total Factor Productivity growth), growth in real output prices and the growth of primary inputs.
The real income was the second highest after the record real oil export earnings of around $ 465 billion achieved in 2008, when crude prices soared to their highest average before they tumbled in the wake of the global fiscal crisis.
By this author's calculation, that rate of growth would take 694 years to double any initial level of real income per person, and in fact, those were relatively prosperous and progressive centuries.
Percentage Change in Median Household Real Income by Education Level of Head of Household (2001-2009) < 12 -9 High School -10.
Between 2000 and 2008, EU27 real income per worker is estimated to have increased by 15.
However, an analysis based on real income per capita (1)--an estimate of what the average person can buy with an average income--presents a very different picture, especially when leisure time is also taken into account.
Over main results suggest that electricity and coal consumption responds positively to changes in real income per capita and negatively to changes in domestic price level.
Household average real income declined between 2 and 5 percent for the lowest-income families.
A significant portion of their argument rests on their claim that Saddam's rule produced a decline in Iraqi real income per capita of about 75 percent.
If there is a common denominator for which European countries should strive, it is stability in prices and wages as the only proven long-term basis for real income growth.