Tariff Reduction and Employment in Canadian Manufacturing, 1988-1994

This paper uses firm-level data from the T2/LEAP to investigate whether the link between tariff changes and employment differed across firms with various productivity and leverage characteristics over the period 1988 to 1994. The results suggest that the combined effect of domestic and U.S. tariff reductions on employment was typically small, but that losses were significantly larger for firms which were less productive.