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- Articles and reports: 36-28-0001202201000002Description:
Rising wages and prices have characterized 2021 and 2022. Soaring unit labour costs have raised competitiveness concerns. This article examines the relationship between real wages and productivity to see whether real wage growth (growth in real total compensation per hour worked) has lagged behind labour productivity growth in recent years. It examines whether the result is sensitive to differences in the definition of real wages.
Release date: 2022-10-27 - Stats in brief: 11-631-X2022004Description:
This presentation focuses on labour productivity, a measure of efficiency widely used in conjunction with data on labour costs and profitability to gauge the competitiveness of Canadian businesses.
Release date: 2022-09-01 - Articles and reports: 15-206-X2014037Description:
This paper presents estimates of effective multifactor productivity (MFP) growth for Canada, the United States, Australia, Japan and selected European Union (EU) countries, based on the EU KLEMS productivity database and the World Input-Output Tables. Effective MFP growth captures the impact of the productivity gains in upstream industries on the productivity growth and international competitiveness of domestic industries, thereby providing an appropriate measure of productivity growth and international competitiveness in the production of final demand products such as consumption, investment and export products. A substantial portion of MFP growth, especially for small, open economies such as Canada’s, is attributable to gains in the production of intermediate inputs in foreign countries. Productivity growth tends to be higher in investment and export products than for the production of consumption products. Technical progress and productivity growth in foreign countries have made a larger contribution to production growth in investment and export products than in consumption products. The analysis provides empirical evidence consistent with the hypothesis that effective MFP growth is a more informative relevant indicator of international competitiveness than is standard MFP growth.
Release date: 2014-09-09 - Journals and periodicals: 11-624-MGeography: CanadaDescription:
This series contains short analytical articles providing statistical insights on emerging issues in the economy such as productivity, innovation and technology use. These articles briefly describe the issues and the results examined by these research papers.
The articles describe issues on a wide range of topics, including - the amount of dynamic competition taking place as a result of the entry of new firms and the exit of closed firms; - the amount of merger activity taking place; - the difference between multinational and domestic firms; - the productivity growth in Canada; - the changes in the geographic location of industry; - the problems in small-firm financing; - the changing industrial structure of different regions; - how the economy interacts with the environment; - the changes in trade patterns; - Canada/United States price differences; - the innovation process in Canada; - the differences between small and large producers; - the changing patterns of advanced technology use and its effect on firm performance; - the type of strategies that differentiate more-successful from less-successful firms.
Release date: 2010-06-08 - 5. Productivity Spillovers from Competitive Reallocation: Evidence from Canadian Manufacturing Plants ArchivedArticles and reports: 15-206-X2009024Description:
This paper uses plant-level data on productivity growth and changes in market share over different periods during the 1970s, 1980s, and 1990s to investigate whether plants with declining market shares obtain productivity spillovers from more successful producers and whether the impact of spillovers is affected by the distance between plants. We are primarily interested in the extent to which productivity externalities moderate the centrifugal forces that separate growing plants from declining rivals because of the productivity advantages enjoyed by the former.
The paper focuses on the productivity performance of plants with declining market shares as potential receivers of productivity spillovers. Two possible sources for these spillovers are examined rival plants operating at the technological frontier and rivals that are actively gaining market share. The analysis advances a model of the externality process in which the productivity of declining plants is influenced by (1) the economic distance of the declining plant from its technological frontier at the beginning of any period, (2) contemporaneous productivity gains in rival plants that are actively wresting market share away from decliners, and (3) the distance between rival plants.
We evaluate the existence and magnitude of these sources of spillovers frontier plants and market-share gainers because of what they reveal about the types of productive information that struggling plants may be able to assimilate from rivals. Spillovers from the plants at the existing frontier are likely to reflect the established best practices of industry leaders; spillovers coming from market-share gainers involve new sources of productive knowledge that emerge as the frontier is actively being re-established. Our model also incorporates geographic information on the proximity of declining plants to both frontier plants and market-share gainers to test whether productivity spillovers are spatially circumscribed. The results provide evidence that productivity improvements in more successful plants benefit their struggling rivals and that these benefits are inversely related to distance; however, the magnitude of spillovers from growing plants to decliners is relatively small. Spillovers do not offer much of a safety net for producers that are losing the productivity race. The paper also shows that declining plants that start out behind the technological frontier are likely to fall further behind, after the impact of mean reversion is taken into account.
Release date: 2009-05-19 - Articles and reports: 15-206-X2007013Geography: CanadaDescription:
This paper compares long-run growth in labour productivity in Canada and the United States from 1961 to 2006. Over the entire period labour productivity in both countries grew at about the same rate. But Canadian growth exceeded that of the United States up to the early 1980s. Since then, U.S. labour productivity growth has exceeded Canadian growth. The gap has widened, particularly after 2000. The paper also decomposes labour productivity growth into three components' that arising from increases in capital intensity, from increases in the skill level of the labour force (due to changes in labour composition) and a residual (multifactor productivity growth). The first two components (both arising from investment, one in machinery and structures, the other in training) were more important in Canada. The third (the residual often referred to as technological progress) was larger in the United States.
Release date: 2007-08-28 - Articles and reports: 11F0027M2006042Geography: CanadaDescription:
This paper investigates the extent to which productivity growth is the result of firm turnover as output is shifted from one firm to another, driven by the competitive process. Turnover occurs as some firms gain market share and others lose it. Some of the resulting turnover is due to entry and exit. Another part arises from growth and decline in incumbent continuing firms. This paper proposes a method for measuring the impact of firm turnover on productivity growth and shows that it is far more important than many previous empirical studies have concluded. It argues that firm turnover associated with competition is the main source of aggregate labour productivity growth in Canadian manufacturing industries.
Release date: 2006-09-25 - 8. Understanding Productivity: A Primer ArchivedSurveys and statistical programs – Documentation: 15-206-X2006002Description:
This paper provides a concise overview in plain language of the concept of productivity by explaining its relevance and usefulness. This paper is intended for users of the Canadian Productivity Accounts who wish to learn more about productivity concepts, in simple terms.
Release date: 2006-04-21 - Articles and reports: 11F0027M2004021Geography: CanadaDescription:
This paper proposes a method for measuring the impact of plant turnover on productivity growth and outlines how this contribution has changed in Canada as a result of substantial trade liberalization in the 1990s.
Release date: 2004-07-22 - 10. Sizing up employment in clothing manufacturing ArchivedArticles and reports: 75-001-X19970012992Geography: CanadaDescription:
Jobs have been declining in the clothing industry since the late 1980s while production has grown. This article examines this trend, profiles those employed in the industry since 1981, and discusses factors most likely to affect future employment trends. National, provincial and
international data are also presented.
Release date: 1997-03-14
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Analysis (9)
Analysis (9) ((9 results))
- Articles and reports: 36-28-0001202201000002Description:
Rising wages and prices have characterized 2021 and 2022. Soaring unit labour costs have raised competitiveness concerns. This article examines the relationship between real wages and productivity to see whether real wage growth (growth in real total compensation per hour worked) has lagged behind labour productivity growth in recent years. It examines whether the result is sensitive to differences in the definition of real wages.
Release date: 2022-10-27 - Stats in brief: 11-631-X2022004Description:
This presentation focuses on labour productivity, a measure of efficiency widely used in conjunction with data on labour costs and profitability to gauge the competitiveness of Canadian businesses.
Release date: 2022-09-01 - Articles and reports: 15-206-X2014037Description:
This paper presents estimates of effective multifactor productivity (MFP) growth for Canada, the United States, Australia, Japan and selected European Union (EU) countries, based on the EU KLEMS productivity database and the World Input-Output Tables. Effective MFP growth captures the impact of the productivity gains in upstream industries on the productivity growth and international competitiveness of domestic industries, thereby providing an appropriate measure of productivity growth and international competitiveness in the production of final demand products such as consumption, investment and export products. A substantial portion of MFP growth, especially for small, open economies such as Canada’s, is attributable to gains in the production of intermediate inputs in foreign countries. Productivity growth tends to be higher in investment and export products than for the production of consumption products. Technical progress and productivity growth in foreign countries have made a larger contribution to production growth in investment and export products than in consumption products. The analysis provides empirical evidence consistent with the hypothesis that effective MFP growth is a more informative relevant indicator of international competitiveness than is standard MFP growth.
Release date: 2014-09-09 - Journals and periodicals: 11-624-MGeography: CanadaDescription:
This series contains short analytical articles providing statistical insights on emerging issues in the economy such as productivity, innovation and technology use. These articles briefly describe the issues and the results examined by these research papers.
The articles describe issues on a wide range of topics, including - the amount of dynamic competition taking place as a result of the entry of new firms and the exit of closed firms; - the amount of merger activity taking place; - the difference between multinational and domestic firms; - the productivity growth in Canada; - the changes in the geographic location of industry; - the problems in small-firm financing; - the changing industrial structure of different regions; - how the economy interacts with the environment; - the changes in trade patterns; - Canada/United States price differences; - the innovation process in Canada; - the differences between small and large producers; - the changing patterns of advanced technology use and its effect on firm performance; - the type of strategies that differentiate more-successful from less-successful firms.
Release date: 2010-06-08 - 5. Productivity Spillovers from Competitive Reallocation: Evidence from Canadian Manufacturing Plants ArchivedArticles and reports: 15-206-X2009024Description:
This paper uses plant-level data on productivity growth and changes in market share over different periods during the 1970s, 1980s, and 1990s to investigate whether plants with declining market shares obtain productivity spillovers from more successful producers and whether the impact of spillovers is affected by the distance between plants. We are primarily interested in the extent to which productivity externalities moderate the centrifugal forces that separate growing plants from declining rivals because of the productivity advantages enjoyed by the former.
The paper focuses on the productivity performance of plants with declining market shares as potential receivers of productivity spillovers. Two possible sources for these spillovers are examined rival plants operating at the technological frontier and rivals that are actively gaining market share. The analysis advances a model of the externality process in which the productivity of declining plants is influenced by (1) the economic distance of the declining plant from its technological frontier at the beginning of any period, (2) contemporaneous productivity gains in rival plants that are actively wresting market share away from decliners, and (3) the distance between rival plants.
We evaluate the existence and magnitude of these sources of spillovers frontier plants and market-share gainers because of what they reveal about the types of productive information that struggling plants may be able to assimilate from rivals. Spillovers from the plants at the existing frontier are likely to reflect the established best practices of industry leaders; spillovers coming from market-share gainers involve new sources of productive knowledge that emerge as the frontier is actively being re-established. Our model also incorporates geographic information on the proximity of declining plants to both frontier plants and market-share gainers to test whether productivity spillovers are spatially circumscribed. The results provide evidence that productivity improvements in more successful plants benefit their struggling rivals and that these benefits are inversely related to distance; however, the magnitude of spillovers from growing plants to decliners is relatively small. Spillovers do not offer much of a safety net for producers that are losing the productivity race. The paper also shows that declining plants that start out behind the technological frontier are likely to fall further behind, after the impact of mean reversion is taken into account.
Release date: 2009-05-19 - Articles and reports: 15-206-X2007013Geography: CanadaDescription:
This paper compares long-run growth in labour productivity in Canada and the United States from 1961 to 2006. Over the entire period labour productivity in both countries grew at about the same rate. But Canadian growth exceeded that of the United States up to the early 1980s. Since then, U.S. labour productivity growth has exceeded Canadian growth. The gap has widened, particularly after 2000. The paper also decomposes labour productivity growth into three components' that arising from increases in capital intensity, from increases in the skill level of the labour force (due to changes in labour composition) and a residual (multifactor productivity growth). The first two components (both arising from investment, one in machinery and structures, the other in training) were more important in Canada. The third (the residual often referred to as technological progress) was larger in the United States.
Release date: 2007-08-28 - Articles and reports: 11F0027M2006042Geography: CanadaDescription:
This paper investigates the extent to which productivity growth is the result of firm turnover as output is shifted from one firm to another, driven by the competitive process. Turnover occurs as some firms gain market share and others lose it. Some of the resulting turnover is due to entry and exit. Another part arises from growth and decline in incumbent continuing firms. This paper proposes a method for measuring the impact of firm turnover on productivity growth and shows that it is far more important than many previous empirical studies have concluded. It argues that firm turnover associated with competition is the main source of aggregate labour productivity growth in Canadian manufacturing industries.
Release date: 2006-09-25 - Articles and reports: 11F0027M2004021Geography: CanadaDescription:
This paper proposes a method for measuring the impact of plant turnover on productivity growth and outlines how this contribution has changed in Canada as a result of substantial trade liberalization in the 1990s.
Release date: 2004-07-22 - 9. Sizing up employment in clothing manufacturing ArchivedArticles and reports: 75-001-X19970012992Geography: CanadaDescription:
Jobs have been declining in the clothing industry since the late 1980s while production has grown. This article examines this trend, profiles those employed in the industry since 1981, and discusses factors most likely to affect future employment trends. National, provincial and
international data are also presented.
Release date: 1997-03-14
Reference (1)
Reference (1) ((1 result))
- 1. Understanding Productivity: A Primer ArchivedSurveys and statistical programs – Documentation: 15-206-X2006002Description:
This paper provides a concise overview in plain language of the concept of productivity by explaining its relevance and usefulness. This paper is intended for users of the Canadian Productivity Accounts who wish to learn more about productivity concepts, in simple terms.
Release date: 2006-04-21
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