@TechReport{iza:izadps:dp5669, author={Fenoll, Ainoa Aparicio}, title={The Effect of Product Market Competition on Job Instability}, year={2011}, month={Apr}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={5669}, url={https://www.iza.org/index.php/publications/dp5669}, abstract={This paper assesses the impact of product market competition on job instability as proxied by the use of fixed-term labor contracts. Using both worker data from the Spanish Labor Force Survey and firm data from the Spanish Business Strategies Survey, I show that job instability rises with competition. In particular, a one standard deviation increase in competition in an economic sector decreases the probability that a fixed-term worker gets an open-ended contract within that sector in a given year by more than 30%. The effect is identified by means of exogenous shifts in competition brought about by changes in legislation.}, keywords={product market competition;fixed-term employment;labor contract}, }