The increase in wages leads to a reduction in desired supply at every price, shown as a shift back in supply. The increase in income (for a normal good) leads to an increase in desired quantity demanded at every price, shown as a shift out in demand. The shift out in demand and the shift back in supply both work to increase the price. The shift back in supply works to decrease quantity traded and the increase in demand works to increase quantity traded, thus we can't tell which of the two will be the stronger effect or if, as shown to the left, they roughly cancel each other out.