The 2021 Nobel Prize in Economic Sciences has been awarded to three US-based economists who have provided new insights about the labor market and shown what conclusions about cause and effect can be drawn from natural experiments.
This year’s Laureates are Canadian labor economist David Card, U.S. economist Joshua Angrist and Dutch economist Guido Imbens. Card, 65, is Professor of Economics at University of California, Berkeley. Angrist, 61, is Professor of Economics, Massachusetts Institute of Technology, Cambridge. Imbens, 58, is the Applied Econometrics Professor and Professor of Economics at Stanford University in Stanford, California.
The Royal Swedish Academy of Sciences said it has decided to award the Nobel Prize, with one half to David Card “for his empirical contributions to labor economics” and the other half jointly to Joshua D. Angrist and Guido W. Imbens “for their methodological contributions to the analysis of causal relationships”.
Their approach has spread to other fields and revolutionized empirical research, according to the Academy.
Using natural experiments, David Card has analysed the labor market effects of minimum wages, immigration and education. His studies from the early 1990s challenged conventional wisdom, leading to new analyses and additional insights. The results showed, among other things, that increasing the minimum wage does not necessarily lead to fewer jobs.
In the mid-1990s, Joshua Angrist and Guido Imbens demonstrated how precise conclusions about cause and effect can be drawn from natural experiments.
“Card’s studies of core questions for society and Angrist and Imbens’ methodological contributions have shown that natural experiments are a rich source of knowledge. Their research has substantially improved our ability to answer key causal questions, which has been of great benefit to society,” says Peter Fredriksson, chair of the Economic Sciences Prize Committee.
The prize amount of the Nobel Prize in Economics, known as Sveriges Riksbank Prize in Economic Sciences, is 10 million Swedish kronor ($1.14 million). One half of it will go to David Card and the other half jointly to Joshua Angrist and Guido Imbens.
With this, this year’s Nobel Prize announcements have come to an end.
Source: Read Full Article