Wage
Plain definition
A wage is the price of labor — the payment a worker receives per unit of labor supplied, usually per hour or per month.
In economics
In competitive labor markets, the equilibrium wage equals the marginal revenue product of the marginal worker. Minimum wages set a price floor above equilibrium, which can create unemployment if set too high; efficiency-wage models explain above-equilibrium pay.
Example
A warehouse paying $18 per hour has a wage that, in theory, reflects the extra revenue the last hired worker adds.
Common confusion
The wage is the price of the labor service, not total earnings: two workers can have the same hourly wage but very different monthly incomes if their hours differ.