Median Wage definition

If all salaries were arranged in order, the median wage would be the one with exactly half the data above it and half below it. It contrasts with the mean wage, which is calculated by adding together all the salaries in a data set and dividing it by the total number of salaries, and the mid-range wage.

The median wage is generally considered to be a more accurate reflection of the 'average' wage because it discounts the extremes at either end of the scale. This is important, particularly in a society where there's such a significant gap between the salaries of senior executives and the average worker.


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