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T2-LEAP

T2-Longitudinal Employment Analysis Program

Description

  • Nature: Linkage of data from the T2 form to the Longitudinal Employment Analysis Program (LEAP) dataset.
  • Usage: The database can be used to study firm dynamics, industry turnover and productivity growth, as well as the relationship between firm financing and performance.
  • Content: The T2-LEAP brings together, among other things, sales, gross profits, equity and assets for all incorporated firms in Canada with the employment and payroll data from LEAP.
  • Coverage period: 1984 to 2012.

Funded Projects

The role of intermediaries in international trade is increasing. Broadly defined, intermediaries act as a link between different parties in an agreement or transaction. This may include links in supply chains or specialized firms that assist manufacturers dealing with foreign markets. The purpose of this study is to analyze the importance of wholesalers, a specific type of intermediary, in terms of imports in Canada. In the United States 56% of firms that import are in fact intermediaries, accounting for the purchase of 24% of total imports. Information regarding intermediaries in Canada is scarce. Firm-level imports, either intermediate or finished products, can be categorized into direct and indirect imports. Direct imports are: (1) inputs purchased by manufacturers that are to be used in the production process, and (2) finished products purchased by retailers for the purpose of being sold to consumers. Indirect imports are intermediate products and finished products bought by wholesalers for resale to manufacturers or retailers. Thus, importing firms can be allocated to one of the four following bins: (1) direct importer – manufacturer, (2) direct importer – retailer, (3) indirect importer – wholesaler, and (4) mixed importer (i.e., both direct and indirect importer). This research paper will document the importance, characteristics, and determinants of each bin. As a secondary goal, this paper will investigate intermediation with respect to the United States and the North American Free Trade Agreement (NAFTA). This aspect is relevant since intermediaries possess a greater advantage over direct importing when the barriers to trade are more significant.

Data link: T2-Leap combined with import trade data, 2002-2012

Related Data Sets
ASM-I, T2-LEAP

Related Research Themes
International

This project will explore the technological frictions that firms face when adjusting their capital and labour. These frictions, known as adjustment costs, limit the ability of firms to optimally set their input allocations. Using an administrative firm level dataset from Statistics Canada, a three-factor structural model is developed to estimate the adjustment costs of buildings, machinery & equipment, and labour. The project highlights the degree to which these adjustment costs differ across inputs and explores interrelations between them. These interrelations are important because they provide an additional channel through which fiscal and monetary policy can affect the factor demand of inputs.

Related Data Sets
T2-LEAP

Related Research Themes
Industry and Firm Analysis, Labour Markets

Canada is one of many countries that provides additional support for research and development (R&D) that is undertaken by small firms. This approach is justifiable if the R&D spillovers from small firms are greater than that of the spillovers of large firms. R&D spillovers may be defined as either the involuntary or voluntary transfer of technological information between firms.  While R&D spillovers may be beneficial for one firm and harmful for another, they generally have a positive impact on the economy. Spillovers may vary by the size of the firm that is performing the R&D due to a variety of reasons. For example, smaller firms may have a relatively more difficult time protecting their intellectual property. The most recent estimates of R&D spillovers in Canada were determined approximately thirty years ago by Jeffrey Bernstein (1988). Furthermore, these estimates do not take into consideration the size of a firm. The purpose of this study is to fill the gap in this area of research by providing an up-to-date estimate of R&D spillovers and determine whether such spillovers vary by firm size.

Additional data set: Scientific Research and Experimental Development (SR&ED)

Meyongwan (Daniel) Kim is an economist at the Centre for the Study of Living Standards

Rebekah Owusu is a PhD candidate at the University of Ottawa.

Related Data Sets
T2-LEAP

We aim to understand how providing access to affordable childcare can affect economic productivity. We know from a wide body of academic literature that child-rearing responsibilities impose a severe penalty on the careers of working women, and governments have occasionally attempted to address this by providing public subsidies for universal childcare access. We study one prominent example of such a subsidy program, in which Quebec introduced a generous universal subsidy in 1997 that limited childcare costs to five dollars per day. The specific implementation of the program allows us to compare working mothers with children who are narrowly eligible versus narrowly ineligible for the new program. By comparing otherwise-similar individuals with differing levels of access to childcare, we can estimate how access to childcare affects the future productivity and career trajectories of the individuals affected. We also study whether this subsidy improved the productivity of firms by comparing Quebec to Canadian provinces that did not introduce any new subsidy programs. Our research will provide future policymakers with a better understanding of the costs and benefits of childcare subsidy programs.

Related Data Sets
LWF, T2-LEAP

Related Research Themes
Incomes, Industry and Firm Analysis, Labour Markets

Papers and Publications

June, 2017

March, 2017

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CIP, CFA, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Presented at Data Day

Author(s)

Natalie Goodwin, Statistics Canada RDC Analyst, Western University RDC

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CFA, CIP, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Keywords: RDC

Presented at Data Day

Outline

Accessing business microdata for research purposes at the Canadian Centre for Data Development and Economic Research (CDER) at Statistics Canada

  • CDER basics
  • Data sets available for access to CDER
  • Application process
  • Future directions
  • Other information

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CFA, CIP, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Keywords: CDER; microdata; data access

Presented at Data Day

August, 2015

This paper provides a theoretical and empirical analysis of the effects of nominal exchange rate move-ments on cross-border travel by consumers and on retail firms’ sales. We develop a search-theoretic model of price-setting heterogeneous retailers and traveling consumers who face nominal exchange rate shocks. These exchange rate shocks act as both a supply side shock for retailers though imported input prices and a demand side shock though their effect on the propensity for consumers to cross the border and shop at foreign retail stores. The model provides predictions regarding relationships between firm and regional characteristics and the magnitude of the effects of nominal exchange rate fluctuations and resulting cross-border travel activity on retailers’ sales. We use our theoretical framework to motivate an empirical methodology applied to Canadian firm and consumer level data from 1987 to 2007. Our findings indicate that an appreciation of the Canadian dollar substantially increases cross border travel which in turn has a significant negative effect on the sales of Canadian retailers. These effects diminish with the distance of the retailer from the border and with the shopping opportunities available at relevant US destinations. Using counterfactual experiments, we quantify the effects of more restric-tive border controls after September 2001 which discouraged cross-border trips and reduced retailer losses from cross-border shopping as well as the effects of increased duty free allowances which raised cross-border trips and reduced retailer sales.

Author(s)

Jen Baggs is an Associate Professor at the University of Victoria

Beverly Lapham is a Professor at Queen's University

Related Data Sets
T2-LEAP

Related Research Themes
Industry and Firm Analysis, International

Keywords: International Price Differences; Firm Dynamics; Exchange Rate Pass-Through; Cross-Border Shopping

JEL Codes: F10; F14; L81

May, 2015

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CFA, CIP, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Keywords: CDER; proposal

JEL Codes: Y9

Author(s)

Kim P. Huynh works at the Bank of Canada

Related Data Sets
ASM, ASM-I, CBSA Customs, CEEDD, CFA, CIP, LEAP, LWF, NALMF, SFSME, SIBS, T2-LEAP, TEC, WES

Related Research Themes
Incomes, Industry and Firm Analysis, International, Labour Markets

Keywords: CDER; proposal; microdata

JEL Codes: Y9

November, 2012