§ Mr. RedwoodTo ask the Chancellor of the Exchequer if he will estimate the impact of a 1 per cent. increase in wages on employment levels. [77888]
§ Ms Hewitt[holding answer 19 March 19991: The impact on employment would depend on why wages increased, and how employers, employees and others in the labour force responded to the increase in wages. For example, an increase in wages reflecting higher productivity need not have any effect on employment.