Wage labor is the social relation in which a person sells their capacity to work (labor-power) to an employer in exchange for a wage. It is not simply “working for money” but a specific arrangement in which the worker, lacking independent access to the means of production (land, tools, materials), must sell their labor-power as a commodity on the market. The employer buys this commodity and directs its use, keeping what it produces.

This relation is historically specific. It required the prior dispossession of people from land and other means of subsistence — a process Marx called primitive accumulation and which included the English enclosure acts, colonial land theft, and the destruction of Indigenous economies. Wage labor is distinct from other forms of coerced labor: slavery (where the person is owned), debt peonage (where labor is owed against a debt), corvee (where labor is owed to a lord or state), and indentured servitude (where labor is contracted for a fixed term). Each involves different relations of coercion, ownership, and extraction.

The wage relation produces alienation because the worker does not control the labor process or its products. It generates surplus-value because the employer pays for labor-power (the capacity to work) but extracts labor (the actual work performed), and the value of the latter exceeds the value of the former. The difference is profit.

Wage labor also depends on unwaged labor — the social reproduction that feeds, clothes, houses, and emotionally sustains workers — performed disproportionately by women and colonized peoples outside the wage relation.