Real Wages - GCSE History Definition

Real wages refer to the amount of goods and services that a worker can buy with their earnings, after taking into account inflation. Inflation is when prices go up over time, which means the same amount of money can buy less than before. If wages increase but prices go up even more, real wages might actually decrease because workers can afford less with their earnings. Studying real wages helps us understand how the standard of living for workers has changed over time, which is important when looking at historical periods like the Industrial Revolution. During this time, there were many changes in wages and living conditions, which are key topics in GCSE History.