Print Email Facebook Twitter Predicting the impact of a national minimum wage: are the general equilibrium models up to the task? Title Predicting the impact of a national minimum wage: are the general equilibrium models up to the task? Author Storm, S.T.H. (TU Delft Economics of Technology and Innovation) Isaacs, G. (University of Witwatersrand) Date 2016 Abstract This article analyses whether computable general equilibrium (CGE) models are suitable for projecting the likely consequences of implementing a national minimum wage. Referring to modelling exercises undertaken by the National Treasury and the Development Policy Research Unit (DPRU), it shows that their projection of a strongly negative impact on employment and other macroeconomic indicators is a direct result of the architecture and assumptions of these models. By design these models preclude alternative outcomes; this renders them rather unsuitable as guides to policymaking. To reference this document use: http://resolver.tudelft.nl/uuid:d348fd14-a3e4-42c5-b4f2-ec6a15bfa06c Publisher Econ3x3 Part of collection Institutional Repository Document type report Rights © 2016 S.T.H. Storm, G. Isaacs Files PDF Isaacs_Storm_2016_CGE_mod ... _Final.pdf 409.69 KB Close viewer /islandora/object/uuid:d348fd14-a3e4-42c5-b4f2-ec6a15bfa06c/datastream/OBJ/view