Author(s)

Awadhesh Pratap Singh

Indian Institute of Management, Lucknow, India.

The importance of production workers is widely acknowledged in Industrial Economics. With respect to India where many industries are dominated by large family owned enterprises, this paper analyzes the impact of the size of production workers, management staff and proprietors on productivity for 11 manufacturing industries aggregated for 20 major states of India. The paper employs latest econometric techniques namely, panel cointegration and FMOLS that deals with widely known non-stationary and endogeneity issues in panel data. The results show that Indian manufacturing sector is highly sensitive to production workers and management staff. The externalities of production workers and management staff on TFP, output and labor productivity are consistently significant across the models. The significance to proprietors is found neither consistent nor significant.

TFP, Labor Productivity, Output, FMOLS

Singh, A. (2018) Does Size Matter?—The Effect of Size of Production Workers, Management Staff and Proprietors on Productivity. Theoretical Economics Letters, 8, 2290-2307. doi: 10.4236/tel.2018.811149.