Employment Generation by Small Producers in the Canadian Manufacturing Sector

Statistics Canada Working Paper 70

42 Pages Posted: 24 Jul 1996

See all articles by John R. Baldwin

John R. Baldwin

Statistics Canada - Microeconomic Analysis Division

Garnett Picot

Statistics Canada

Date Written: November 1994

Abstract

This paper uses job turnover data to compare how job creation, job destruction and net job change differ for small and large establishments in the Canadian manufacturing sector. It uses several different techniques to correct for the regression-to-the-mean problem that, it has been suggested, might incorrectly lead to the conclusion that small establishments create a disproportionate number of new jobs. It finds that net job creation for smaller establishments is greater than that of large establishments after such changes are made. The paper also compares the importance of small and large establishments in the manufacturing sectors of Canada and the United States. The Canadian manufacturing sector is shown to have both a larger proportion of employment in smaller establishments but also to have a small establishment sector that is growing in importance relative to that of the United States.

JEL Classification: J63

Suggested Citation

Baldwin, John R. and Picot, Garnett, Employment Generation by Small Producers in the Canadian Manufacturing Sector (November 1994). Statistics Canada Working Paper 70, Available at SSRN: https://ssrn.com/abstract=67068 or http://dx.doi.org/10.2139/ssrn.67068

John R. Baldwin (Contact Author)

Statistics Canada - Microeconomic Analysis Division ( email )

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Ottawa, Ontaria K1A 0T6
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613-951-8588 (Phone)
613-951-5403 (Fax)

Garnett Picot

Statistics Canada ( email )

Ottawa, Ontario
Canada
613-951-8214 (Phone)
613-951-5403 (Fax)

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