Table 6
Effect on labour productivity of counterfactual changes in firm size distribution, by industry, Canada, 2002 and 2008

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Effect on labour productivity of counterfactual changes in firm size distribution, by industry, Canada, 2002 and 2008
Table summary
This table shows the effect on Canadian business-sector labour productivity of three counterfactual and their impact on the Canada/United States relative productivity levels. The Canadian business-sector productivity levels of the original (includes both small and large firms) and each counterfactuals (appearing as column headers) were calculated in Canadian dollar. The table shows how Canadian aggregate labour productivity would improve if shares of hours worked of large firms were increased to U.S. levels and if the relative productivity of small to large firms in Canada were increased up to the relative productivity of small and large firms that existed in the United States. Counterfactual one recalculates the Canadian Labour business-sector productivity using United States shares of hours worked for small and large firms. These are then aggregated to the business sector using Canadian industry shares of hours worked. Counterfactual two recalculates Canadian business-sector labour productivity for small firms using the relative United States small/large ratio (of small to large firms) while leaving Canadian large firm labour productivity unchanged. These are summed using Canadian shares of hours worked for small and large firms. The business sector is derived using the Canadian industry shares of hours worked. The third counterfactual recalculates the Canadian business-sector labour productivity by summing the original Canadian labour productivity by industry using the United States shares of hours worked in each industry. The relative to original labour productivity for each counterfactual (appearing as column headers) was calculated (as a ratio) as a percentage of the original labour productivity. The United States labour productivity (appearing as column headers) is expressed in U.S. dollars.
  Canadian labour productivity estimates United States labour productivity Producer power parities Canada–United States relative productivity
Original Counterfactual Original Counterfactual
One Relative to original Two Relative to original Three Relative to original One Two Three
  canadian dollars ratio canadian dollars ratio canadian dollars ratio U.S. dollars ratio
2002 36.4 39.0 1.07 40.9 1.12 35.2 0.97 37.5 0.82 0.79 0.85 0.89 0.77
2003 38.0 40.6 1.07 42.4 1.12 36.0 0.95 39.7 0.79 0.76 0.81 0.85 0.72
2004 39.5 42.1 1.06 44.4 1.12 37.4 0.94 41.9 0.78 0.74 0.78 0.83 0.70
2005 42.1 44.9 1.07 46.3 1.10 39.2 0.93 43.9 0.78 0.74 0.79 0.82 0.69
2006 43.8 46.3 1.06 48.2 1.10 40.8 0.93 45.5 0.78 0.75 0.79 0.82 0.70
2007 45.3 48.0 1.06 50.5 1.11 42.4 0.94 46.9 0.77 0.74 0.79 0.83 0.70
2008 47.3 49.6 1.05 53.0 1.12 43.7 0.92 48.3 0.74 0.73 0.76 0.82 0.67
Average ... ... 1.06 ... 1.11 ... 0.94 ... ... 0.75 0.80 0.84 0.71
...
not applicable
Source(s):
Statistics Canada, authors' calculations.
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