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100 _aBasole, Amit Chopde, Dimple and Nath, Paaritosh
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245 _aThe formal informal productivity gap among small manufacturing firms: Evidence from India
260 _aEconomic and Political Weekly
300 _a60(43), 25 Oct- Nov 1, 2025: p.47-56
520 _aSmall manufacturing firms in the informal sector have the potential to contribute to structural transformation, but their capacities vis-à-vis formal firms are not well-understood. To address this, we create a novel unit-level dataset combining Annual Survey of Industries data for registered (formal) factories with the National Sample Survey data on unincorporated (informal) enterprises. We show that differences in observed characteristics, such as capital and labour inputs, location and gender composition of the workforce, account for a major part of the productivity difference between formal and informal units. Unobservables, such as local geography, managerial or entrepreneurial ability and labour quality (skills), account for around 25% of the productivity gap. – Reproduced https://www.epw.in/journal/special-articles/formal-informal-productivity-gap-among-small.html
773 _aEconomic and Political Weekly
942 _cAR