Labor Market Concentration and Daily Wages of Full-Timers—IV Estimates, New Hires Versus Incumbents
| Dep. Var. Daily Wages | Denmark | France | Germany | Portugal |
|---|---|---|---|---|
| Log HHI*New hire | −0.041*** | −0.024*** | −0.016*** | −0.024*** |
| (0.008) | (0.002) | (0.002) | (0.009) | |
| Log HHI*Incumbent | −0.031*** | −0.022*** | −0.020*** | −0.025*** |
| (0.008) | (0.002) | (0.002) | (0.008) | |
| KP F-test | 14.3 | 354.5 | 135.5 | 7.3 |
| Observations | 6,299,179 | 8,269,375 | 11,050,435 | 15,086,998 |
Notes: 2SLS estimates. The dependent variable is log(wage). Local labor markets are defined based on four-digit occupations and functional areas (FAs). 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. Log(HHI) is instrumented by the average of the log inverse number of firms with positive hiring in other FAs for the same occupation. Interactions between log(HHI) and another variable are instrumented by this variable interacted with the instrument for log(HHI). 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.