stockholm – A US economist on Monday won the Nobel Prize in Economics for pioneering research showing that raising the minimum wage does not lead to lower hiring and lower wages for immigrant native-born workers, who typically Challenging held ideas. Two others shared the prize for creating a way to study these types of social issues.
Canadian-born David Card of the University of California, Berkeley was given half of the prize for his research into how the minimum wage, immigration and education affect the labor market, while the other half was shared by Joshua Angist of the Massachusetts Institute Was. from Stanford University of Technology and Dutch-born Guido Imbens for his framework for studying issues that may not rely on traditional scientific methods.
The Royal Swedish Academy of Sciences stated that all three “completely replaced empirical work in economic science.”
Peter Frederickson, chairman of the Committee on Economic Sciences, said, “The study of the card of the main questions for society and the methodological contributions of Angrist and Imbens has shown that natural experiments are a rich source of knowledge.” “His research has greatly improved our ability to answer important causal questions, which has been very beneficial to society.”
Card looked at what happened when New Jersey raised its minimum wage from $4.25 to $5.05, using restaurants bordering eastern Pennsylvania as a comparison group.
In contrast to previous studies, he and his late research fellow Alan Krueger found that the increase in the minimum wage had no effect on the workforce. Card later worked on the issue further. Overall, the research concluded that the negative effects of increasing the minimum wage are small and significantly less than they were 30 years ago, the Nobel committee said.
The card also found that the income of those born in a country may benefit from new immigrants, while immigrants who arrived earlier are at risk of being negatively affected.
Angrist and Imbens won half their prize for work on methodological issues, which allow economists to draw firm conclusions about cause and effect, even if they cannot study according to strict scientific methods.
Speaking on the phone from his home in Massachusetts, Imbens told reporters that he was sleeping “after a busy weekend” when the call came.
“I was absolutely shocked to receive a telephone call,” he said. “And then I was absolutely thrilled to hear the news … that I got to share it with Josh Angrist and David Card,” who he called “both very good friends of mine.” Imbes said that Angrist was the best man at their marriage.
Krueger, who worked with Card on some of the Nobel-winning research, died in 2019 at the age of 58. He taught at Princeton for three decades and was the chief economist of the US Department of Labor under then-President Bill Clinton. He served in the US Treasury Department under then-President Barack Obama, then as chairman of Obama’s Council of Economic Advisors. Nobel Prizes are not awarded posthumously.
The award comes with a gold medal and 10 million Swedish kronor (over $1.14 million).
Goran K. Hansson (C), Permanent Secretary of the Royal Swedish Academy of Sciences, and Nobel Economics Prize Committee members Peter Fredriksson (L) and Eva Mork (R) give a press conference to announce the winners of the 2021 Sveriges Riksbank Prize.
Different Other Nobel PrizesThe Economics Prize was established not in the will of Alfred Nobel but in his memory by the Swedish Central Bank in 1968, with the first winner being selected a year later. This is the last award announced each year.
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