The Matching Multiplier and the Amplification of Recessions

This paper shows that the unequal incidence of recessions in labor market amplifies aggregate shocks. Using administrative data from United States, I document a positive covariance between workers' marginal propensities to consume (MPCs) and their elasticities earnings GDP, which is key moment for new class heterogeneous-agent models. define matching multiplier as increase stemming this high MPC workers more cyclical jobs. show large enough by 20 percent over an equal exposure benchmark. (JEL E21, E23, E24, E32)