Fattal Jaef, Roberto N.Abreha, Kaleb GirmaMaemir, Hibret BeleteCirera, XavierMaemir, Hibret BeleteDavies, Elwyn2022-11-172022-11-172022-11https://hdl.handle.net/10986/38324This paper characterizes the firm size distribution by exploiting establishment-level censuses covering both formal and informal firms in Sub-Saharan Africa. The paper finds a "missing middle" in the employment-based size distribution of firms in four Sub-Saharan African countries. This "missing middle" hinges on the inclusion of informal firms, and it is not explained by state- or foreign-owned firms at the top of the size distribution, nor does it emerge from the size distribution of entrants. The paper reconciles these empirical results with a model of firm dynamics with endogenous informality and shows that calibrated values of entry barriers and productivity-dependent idiosyncratic distortions generate a "missing middle" that is consistent with its underlying drivers in the data.enCC BY 3.0 IGOMISSING MIDDLEFIRM SIZE DISTRIBUTIONINFORMALITYMARKET DISTORTIONESTABLISHMENT CONCENSUSMANUFACTURINGINCLUSION OF INFORMAL FIRMSENDODGENOUS INFORMALITYWorking PaperWorld Bank10.1596/1813-9450-10233