Summer Snack Program

The actual purchasing power of wages. Often computed by dividing money wages by the cost-of-living index. Example: if money wages increase from $1.00 to $1.25 an hour, but the cost-of-living also increases by 25 per cent, real wages have remained constant. It is by looking at the changes in real wages that changes in living standards can be observed. (See also COLA Clause.)