The term “labor” is used to refer to virtually any type of worker: blue-collar, white-collar, hourly, salaried, professional, etc
Wages
§ Price paid for labor
§ Direct pay plus fringe benefits (vacations and health insurance)
§ Nominal wage: the amount of money received per hour, day, or year
§ Real wage: the quantity of goods and services a worker can obtain with nominal wages or the “purchasing power” of nominal wages