Factor Utilization in Indian Manufacturing: A Look at the World Bank Investment Climate Surveys Data
We use the World Bank Investment Climate Surveys data to analyze the employment of both labor and capital in Indian manufacturing. We focus on disparities among states in manufacturing employment patterns, and provide reduced form evidence of their relationship to both (i) institutional constraints, and (ii) productivity.
This paper builds on a chapter by the same authors entitled "Evidence of Underemployment of Labor and Capital in Indian Manufacturing" included in the World Bank South Asia Region report Accelerating Growth and Job Creation in South Asia. The findings expressed in this paper are those of the authors and do not necessarily represent the views of the World Bank. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.