The role of firm size in the Canada-U.S. labour productivity gap since 2000 / by Wulong Gu and Josip Lesica. : CS36-28-0001/2025-12-2E-PDF

"This paper examines the role of firm size in the widening labour productivity gap between Canada and the United States since 2000. Canada's business-sector labour productivity level declined from 83% of the U.S. level in 2002 to 73% in 2019. The gap is partly explained by Canada's higher share of small firms and their greater productivity disadvantage relative to large firms. In 2019, these two factors accounted for 60% of the 27-percentage-point productivity gap, with the remainder 40% attributable to the generally lower productivity of Canadian firms"--Abstract, page 1.

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