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Minimum Wage

Volume 177: debated on Monday 23 July 1990

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To ask the Chancellor of the Exchequer, pursuant to the answer to the hon. Member for Stretford, 2 February, Official Report, column 375, on minimum wage effects, what estimates have been made of the relationship between employment and wages using the current version of the Treasury model; and what estimates have been obtained using alternative economic models.

[holding answer 20 July 1990]: Most economic models, including the current version of the Treasury model, show that slower growth of real wages will raise employment in the long run.It has not, since 1978, been the practice to run particular simulations on the Treasury model to meet specific outside requests; but the hon. Member will be aware that the current version of the model is available for Members' use through the Library.