Notes: 2SLS estimates. The dependent variable is a dummy variable equal to one if the individual is hired on a permanent contract and zero if hired on a temporary contract. Local labor markets are defined based on four-digit occupations and functional areas (FAs). Control variables include gender, education (four categories), yearly dummies for workers’ age, whether the individual was employed the year before, whether they work full-time or not, as well as 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. Standard errors are clustered at the labor-market-by-year level. KP F-test: Kleibergen–Paap Wald F-test. +p < 0.11, *p < 0.1, **p < 0.05, ***p < 0.01. Observations include singletons.