Why are Canadians less productive than Americans?

Why are Canadians less productive than Americans?
Americans are between 20% to 25% more productive than Canadians if we looks a GDP per capita. While it is true that Americans work 3.5% more hours than Canadians, this still does not explain the productivity gap.
Another argument you will hear is that the industrial composition is different between the two countries. However, Canada is less productive across virtually all industries when compared to the United States.
The productivity gap is potentially explained in part to businesses’ investment in tools and technologies for employees, the skills and ability of the workforce, innovation, and business size. Businesses in the USA spend over 50% more on capital for workers especially in information and communications technologies. It is not sufficient just to invest in capital and technology, but also to have workers that can effectively utilize both.
The USA has more people with Bachelor’s degrees, as well as PhDs. Also, there is significant brain drain from Canada to the USA as graduates move south of the border to pursue opportunities and higher pay. American research universities also fuel productivity. The USA also produces roughly twice as much patents per person than Canada.
Works Cited:
https://businesscouncilab.com/insights-category/analysis/productivity-part-three-canada-us-productivity-gap/
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