Formal sector subcontracting and informal sector employment in Indian manufacturing

IZA Journal of Labor & Development

Table 4 Modernity index informal sector, average by state

State	Capital per worker	Location	Hired workers	Qualified owner	Modernity index
Orissa	8.26	0.13	0.22	0.02	−1.48
Madhya Pradesh	9.56	0.15	0.36	0.07	−0.63
Bihar	9.34	0.27	0.46	0.07	−0.53
West Bengal	9.41	0.28	1.18	0.03	−0.39
Assam	9.12	0.33	0.72	0.09	−0.37
Rajasthan	10.45	0.38	0.74	0.01	−0.30
Andhra Pradesh	9.78	0.39	0.84	0.04	−0.27
Uttar Pradesh	9.96	0.38	0.80	0.05	−0.13
Tamil Nadu	10.27	0.36	1.54	0.03	−0.09
Karnataka	9.94	0.41	1.26	0.12	−0.06
Himachal Pradesh	10.16	0.55	0.90	0.14	0.15
Kerala	10.16	0.54	1.65	0.12	0.28
Haryana	11.00	0.49	1.65	0.11	0.32
Gujarat	10.62	0.61	1.51	0.05	0.33
Punjab	10.97	0.53	1.64	0.06	0.38
Maharashtra	11.25	0.55	2.53	0.10	0.62
Delhi	11.22	0.56	3.31	0.15	0.79

Note: Unit of observation in the analysis is the state-industry; values in this table are averaged across states. Capital per worker is in logs, location is the share of enterprises with a fixed location outside the owner’s household, hired workers is the average number of hired workers per enterprise, and qualified owner is the share of proprietary enterprises with a technically qualified owner. The modernity index is the average standardized value, states are ordered from lowest to highest modernity index.