Nobel Prize for economics in 2021

Nobel Prize for economics in 2021

Award

Who won the prize?

  • The Nobel prize for economics was awarded on
    1. David Card (US-based, Canadian-born)
    2. Joshua Angrist (US)
    3. Guido Imbens (US-based, Dutch-born)

How the prize shared among them?

  • Canadian-born Dr. Card of the University of California, Berkeley, was awarded one half of the prize for his research on how minimum wage, immigration and education affect the labour market.
  • The other half was shared by Joshua Angrist from the Massachusetts Institute of Technology and Dutch-born Guido Imbens from Stanford University for their framework for studying issues that can’t rely on traditional scientific methods.

Why such award given to them?

  • The Royal Swedish Academy of Sciences said the three have “completely reshaped empirical work in the economic sciences.”
  • U.S.-based economist David Card for pioneering research that showed an increase in minimum wage does not lead to less hiring and that immigrants do not lower pay for native-born workers, challenging commonly held ideas.
  • Such research made economics more applicable to everyday life, provided policymakers with actual evidence on the outcomes of policies, and in time spawned a more popular approach to economics, epitomised by the bestseller Freakonomics by Stephen Dubner and Steven Levitt.
  • In a study published in 1993, Dr. Card looked at what happened to jobs at fast-food restaurants Burger King, KFC, Wendy’s and Roy Rogers when New Jersey raised its minimum wage from $4.25 to $5.05, using restaurants in bordering eastern Pennsylvania as the control — or comparison — group.
  • Contrary to previous studies, he and his research partner Alan Krueger, who died in 2019, found that an increase in the minimum wage had no effect on the number of employees.

 

Source: The Hindu