| dc.description.abstract | This paper considers the effects of union-bargained minimum wages on transitions into and out
of employment in the hotels and catering industry over the period 1979–99. This industry is
characterised by a high fraction of unskilled labour input, high worker turnover and binding
minimum wages. The empirical approach identifies workers affected by real minimum wage
increases and decreases, respectively. Job separations and accessions for the treatment groups are
then contrasted to the outcomes for control groups, with wages marginally above those of the
treatment groups. Unlike previous studies, this paper also considers same-period transitions for
same-wage workers who are unaffected by minimum wage changes. This procedure should help to
control for unobserved differences between high- and low-wage workers and is made possible by
the diversified minimum wage structure of the industry. According to the results, job separations
tend to increase with rising minimum wages (except for teenagers during 1993–98). The evidence
regarding accessions is less conclusive. | vi |
