Tables 3a and 3b provide urban shares by two-digit NIC industry, again combining the organized and unorganized sectors. Office, accounting and computing machinery; Publishing, printing and media; and Medical, precision and optical instruments, watches are the most urbanized industries with greater than 80% of employment in urban plants. The least urbanized industries in 2000 are Wood and wood products; straw and plating articles; Other non-metallic mineral products; Tobacco products; and Food products and beverages, with under 30% of industry employment in an urban area. Major increases in urbanization of employment are evident for the Textiles; Leather tanning; luggage, handbags, footwear; Machinery and equipment, n.e.c.; and Office, accounting and computing machinery industries.

Table 3b presents some industry traits: 1) Labor intensity, defined as the total wage bill over value of shipments; 2) Capital intensity, defined as the total fixed capital value over value of shipments; 3) Materials intensity, defined as total raw materials costs over value of shipments; and 4) Land intensity, defined as the closing net land value over value of shipments. There is a 0.20 correlation between labor intensity and 2000 urbanization of employment across industries. There is a negative correlation of -0.05 for capital intensity. There is no correlation evident for the materials or land intensity.

The last part of Table 3b documents the observed ratio of these industry traits between urban and rural establishments for an industry. That is, the urban-rural labor intensity ratio measures the labor intensity of urban establishments to the labor intensity of rural establishments for each industry. The other ratios are similarly defined. Plants in urban areas generally employ more labor, similar levels of materials, and less capital and land than rural plants do. There is a 0.43 correlation between the urban-rural intensity difference and the urbanization rate for labor usage; the correlation to materials usage differentials is likewise high at 0.44. Capital intensity differentials are less correlated at 0.26, and land usage differentials are not correlated with overall urbanization levels.<sup>6</sup> These descriptive tables refine one of the key trends noted in the introduction. Overall, manufacturing activity is becoming more urbanized as measured by employment and plants, while it is becoming less urbanized as measured by output. These trends are mainly explained by the share of organized and unorganized sectors for each metric and the differences in the urbanization trends for these sectors. The details in Tables 2-3b also show that urbanization increases are concentrated, rather than broad-based, even for employment. Only 8 of the 17 states and 7 of the 22 industries exhibit an increase in urbanization from 1994-2005. The 6 These metrics are developed using data for the year 2000 from the organized sector. We use the year 2000 to match our district traits taken from the 2001 Census described in Section 4. Several of these variables are not consistently available for unorganized sector. These correlations and our analyses below are robust to winsorizing these industry traits at their 5%/95% values.

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