EMPLOYMENT GENERATION BY SMALL PRODUCERS IN THE CANADIAN MANUFACTURING SECTOR

This paper uses job turnover data to compare how job creation, job des truction and net job change differ for small and large establishments in the Canadian manufacturing sector. It uses several different techni ques to correct for the regression-to-the-mean problem that, it has be en suggested, might incorrectly lead to the conclusion that small esta blishments create a disproportionate number of new jobs. It finds that net job creation for smaller establishments is greater than that of l arge establishments after such changes are made. The paper also compar es the importance of small and large establishments in the manufacturi ng sectors of Canada and the United States. The Canadian manufacturing sector is shown to have both a larger proportion of employment in sma ller establishments but also to have a small establishment sector that is growing in importance relative to that of the United States.