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Are small or large producers driving the Canada‐U.S. labour productivity gap? Recent evidence from manufacturing

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  • Jianmin Tang

Abstract

This paper shows that the higher small‐plant employment share in Canada compared with the United States mattered for the Canada‐U.S. manufacturing labour‐productivity gap, but it did not contribute to the widening of the gap between 2002 and 2007. In addition, it shows that while the weaker productivity performance of small plants in Canada compared with the United States accounted for much of the gap in a particular year, the deterioration in the productivity performance of large plants in Canada was responsible for most of the widening gap over this period. Est‐ce que les petits ou les grands producteurs conforment l’écart de productivité du travail entre le Canada et les États‐Unis? Résultats récents pour le secteur manufacturier. Ce texte montre que la plus grande portion de l'emploi dans les petits établissements au Canada par rapport aux États‐Unis est importante dans l'explication de la différence de niveau de productivité du travail entre le Canada et les États‐Unis, mais que ce facteur n'a pas contribué à l'accroissement de l'écart entre 2002 et 2007. De plus on montre qu'alors que la productivité plus faible des petits établissements au Canada par rapport aux États‐Unis explique le gros de l'écart pour une année particulière, c'est la détérioration de la productivité des grands établissements au Canada qui explique le gros de la croissance de l'écart au cours de cette période.

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  • Jianmin Tang, 2014. "Are small or large producers driving the Canada‐U.S. labour productivity gap? Recent evidence from manufacturing," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(2), pages 517-539, May.
  • Handle: RePEc:wly:canjec:v:47:y:2014:i:2:p:517-539
    DOI: 10.1111/caje.12080
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    Cited by:

    1. Lin Shao & Rongsheng Tang, 2021. "Allocative Efficiency and Aggregate Productivity Growth in Canada and the United States," Staff Working Papers 21-1, Bank of Canada.
    2. Tang, Jianmin & Wang, Weimin, 2020. "Technological frontier, technical efficiency and the post-2000 productivity slowdown in Canada," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 12-25.

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