§ 28. Mr. Eastham
asked the Chancellor of the Exchequer what assessment he has made of the effect of pay variations on the United Kingdom economy.
§ Mr. MacGregor
The Treasury paper "The Relationship between Employment and Wages" published in January 1985, indicates that a reduction of 1 per cent. in the rate of growth of real earnings would lead in time to between 110,000 and 220,000 new jobs.
Copies of this paper are available in the House of Commons Library.