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• 1. Employment Generation by Small Producers in the Canadian Manufacturing Sector Archived

  Articles and reports: 11F0019M1994070

  Geography: Canada

  Description:

  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...

  Description:

  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.

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  Release date: 1994-11-16

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• 2. Have Small Firms Created a Disproportionate Share of New Jobs in Canada? A Reassessment of the Facts Archived

  Articles and reports: 11F0019M1994071

  Geography: Canada

  Description:

  The statistical observation that small firms have created the majority of new jobs during the 1980s has had a tremendous influence on public policy. Governmentshave looked to the small...

  Description:

  The statistical observation that small firms have created the majority of new jobs during the 1980s has had a tremendous influence on public policy. Governmentshave looked to the small firm sector for employment growth, and have promoted policies to augment this expansion. However, recent research in the US suggeststhat net job creation in the small firm sector may have been overestimated, relative to that in large firms. This paper addresses various measurement issues raised inthe recent research, and uses a very unique Canadian longitudinal data set that encompasses all companies in the Canadian economy to reassess the issue of jobcreation by firm size. We conclude that over the 1978-92 period, for both the entire Canadian economy and the manufacturing sector, the growth rate of (net)employment decreases monotonically as the size of firm increases, no matter which method of sizing firms is used. The small firm sector has accounted for adisproportionate share of both gross job gains and job losses, and in that aggregate, accounted for a disproportionate share of the employment increase over theperiod. Measurement does matter, however, as the magnitude of the difference in the growth rates of small and large firms is very sensitive to the measurementapproaches used. The paper also produces results for various industrial sectors, asks whether the more rapid growth in industries with a high proportion of smallfirms is responsible for the findings at the all-economy level, and examines employment growth in existing small and large firms (ie excluding births). It is found thatemployment growth in the population of existing small and large firms is very similar.

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  Release date: 1994-11-16

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• 1. Employment Generation by Small Producers in the Canadian Manufacturing Sector Archived

  Articles and reports: 11F0019M1994070

  Geography: Canada

  Description:

  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...

  Description:

  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.

  More

  Release date: 1994-11-16

  ---

• 2. Have Small Firms Created a Disproportionate Share of New Jobs in Canada? A Reassessment of the Facts Archived

  Articles and reports: 11F0019M1994071

  Geography: Canada

  Description:

  The statistical observation that small firms have created the majority of new jobs during the 1980s has had a tremendous influence on public policy. Governmentshave looked to the small...

  Description:

  The statistical observation that small firms have created the majority of new jobs during the 1980s has had a tremendous influence on public policy. Governmentshave looked to the small firm sector for employment growth, and have promoted policies to augment this expansion. However, recent research in the US suggeststhat net job creation in the small firm sector may have been overestimated, relative to that in large firms. This paper addresses various measurement issues raised inthe recent research, and uses a very unique Canadian longitudinal data set that encompasses all companies in the Canadian economy to reassess the issue of jobcreation by firm size. We conclude that over the 1978-92 period, for both the entire Canadian economy and the manufacturing sector, the growth rate of (net)employment decreases monotonically as the size of firm increases, no matter which method of sizing firms is used. The small firm sector has accounted for adisproportionate share of both gross job gains and job losses, and in that aggregate, accounted for a disproportionate share of the employment increase over theperiod. Measurement does matter, however, as the magnitude of the difference in the growth rates of small and large firms is very sensitive to the measurementapproaches used. The paper also produces results for various industrial sectors, asks whether the more rapid growth in industries with a high proportion of smallfirms is responsible for the findings at the all-economy level, and examines employment growth in existing small and large firms (ie excluding births). It is found thatemployment growth in the population of existing small and large firms is very similar.

  More

  Release date: 1994-11-16

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