Notes: 2SLS estimates. The dependent variable is log(wage). Local labor markets are defined based on four-digit occupations and functional areas (FAs). “Coverage share, Any (respectively Sector) CBA” is the proportion of employees covered by any (respectively a sector-level) collective agreement in the industry where the individual is employed. “High coverage dummy, Any (respectively Sector) CBA” is a dummy variable equal to one if the individual is employed in an industry with a proportion of employees covered by any (respectively a sector-level) collective agreement above the median and zero otherwise. Control variables include yearly dummies for workers’ age, whether the individual is a new hire, whether the individual was employed the year before if new hire, as well as individual fixed effects, firm-by-municipality-by-year fixed effects, sector and establishment fixed effects (where not collinear with firm-by-municipality fixed effects), and local labor market fixed effects. In Germany, control variables also include the share of employees covered by a works council in the industry interacted with log(HHI). Log(HHI) is instrumented by the average of the log inverse number of firms with positive hiring in other FAs for the same occupation. Log(HHI) interacted with a collective bargaining indicator (respectively the works council variable) is instrumented by the average of the log inverse number of firms with positive hiring in other FAs for the same occupation interacted with the collective bargaining indicator (respectively the works council variable). Monthly wages instead of daily wages are used for Portugal. Standard errors are clustered at the labor-market-by-year level. KP F-test: Kleibergen–Paap Wald F-test. *p < 0.1, **p < 0.05, ***p < 0.01. Observations include singletons.