In this paper, we focus on and examine the empirical evidence of non- linearity in aggregate Canadian unemployment … reject the null hypothesis of a linear structure for Canadian unemployment. …

This paper extends the standard Real Business Cycle model to incorporate sectoral shifts in unemployment. Using … possibility of generating persistent aggregate unemployment. Calibrated to Canadian data, the models suggest that the introduction … the observed persistence in unemployment. Empirically, we estimated a Vector Auto-Regressive model and successfully …