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Table 1.
Estimates of τ at the Ten-Worker Threshold
LevelτSE
All-India 0.347 (0.081) 
By state   
Bihar 0.693 (0.302) 
Gujarat 0.165 (0.151) 
Kerala 0.138 (0.196) 
Karnataka 0.520 (0.156) 
Uttar Pradesh 0.502 (0.254) 
By industry   
Wholesale and retail trade 0.637 (0.094) 
Manufacturing 0.268 (0.085) 
Construction 0.478 (0.549) 
Electricity, gas, and water −0.367 (0.145) 
By ownership type   
Government and PSU −0.092 (0.128) 
Unincorporated proprietary 0.430 (0.059) 
LevelτSE
All-India 0.347 (0.081) 
By state   
Bihar 0.693 (0.302) 
Gujarat 0.165 (0.151) 
Kerala 0.138 (0.196) 
Karnataka 0.520 (0.156) 
Uttar Pradesh 0.502 (0.254) 
By industry   
Wholesale and retail trade 0.637 (0.094) 
Manufacturing 0.268 (0.085) 
Construction 0.478 (0.549) 
Electricity, gas, and water −0.367 (0.145) 
By ownership type   
Government and PSU −0.092 (0.128) 
Unincorporated proprietary 0.430 (0.059) 

This table presents estimates of regulatory costs faced by establishments with ten or more workers, using the methodology described in section IV with a bandwidth of 0.005. Standard errors were generated using a clustered bootstrap procedure with 200 replications. Clustering is done at the four-digit (NIC) industry level, following Garicano et al. (2016). Estimates are presented for a subset of states, industries, and ownership types. Results for all states, industries and ownership types are available in the online appendix C.

Source: 2005 Economic Census of India.

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