Firm-size distribution in Indian manufacturing : Insights on the missing middle
By: Das, Suraj Das, Simontini and Roy, Saikat Sinha
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Material type: 
BookPublisher: Economic & Political Weekly Description: 60(39), Sep 27, 2025: p.48-54.
In:
Economic & Political WeeklySummary: Apart from bimodality in the size distribution of firms, the literature also shows such incidence in the distribution of productivity and wages. Such evidence is, however, contested by a growing number of studies, and hence the substantiation on the “missing middle” is far from conclusive. Using microdata on organised manufacturing from the Annual Survey of Industries database covering 2002–03 to 2016–17, this paper proposes to address the much-debatable issue of the (non)-existence of the missing middle, suggesting methodological improvements in studying the size distribution of manufacturing firms. Empirical observations at the aggregate and disaggregate levels point to the fact that the very existence of the missing middle depends on the definition of manufacturing employment and the level of aggregation used. The results have implications for industrialisation policy, the pattern of mobility of firms within the manufacturing sector, and employment. – Reproduced
https://www.epw.in/journal/2025/39/special-articles/firm-size-distribution-indian-manufacturing.html
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Articles
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Indian Institute of Public Administration | 60(39), Sep 27, 2025: p.48-54 | Available | AR137549 |
Apart from bimodality in the size distribution of firms, the literature also shows such incidence in the distribution of productivity and wages. Such evidence is, however, contested by a growing number of studies, and hence the substantiation on the “missing middle” is far from conclusive. Using microdata on organised manufacturing from the Annual Survey of Industries database covering 2002–03 to 2016–17, this paper proposes to address the much-debatable issue of the (non)-existence of the missing middle, suggesting methodological improvements in studying the size distribution of manufacturing firms. Empirical observations at the aggregate and disaggregate levels point to the fact that the very existence of the missing middle depends on the definition of manufacturing employment and the level of aggregation used. The results have implications for industrialisation policy, the pattern of mobility of firms within the manufacturing sector, and employment. – Reproduced
https://www.epw.in/journal/2025/39/special-articles/firm-size-distribution-indian-manufacturing.html
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