The Royal Swedish Academy of Sciences announced this Monday to economists David Card, Joshua Angrist and Guido Imbens as the new winners of the Nobel Prize in Economics 2021. “The awardees have provided us with new insights into the labor market and shown what conclusions about cause and effect can be drawn from natural experiments,” explained the Academy.
As explained in the official statement, the jury explained that the Canadian Card stood out for his “empirical contributions to labor economics”, while that of the North American Angrist and the Dutch Imbens highlighted their “methodological contributions to the analysis of causal relationships.” . In the case of all three, they remarked that “their approach has spread to other fields and revolutionized empirical research.”
Using natural experiments, Card analyzed the effects of the minimum wage, immigration, and education on the labor market. ‘His studies in the early 1990s challenged conventional wisdom, leading to new analysis and additional insights. The results showed, among other things, that raising the minimum wage does not necessarily lead to fewer jobs, “the jury remarked.
He added: “We now know that the income of people who were born in a country can benefit from a new immigration, while people who immigrated before run the risk of being negatively affected.” In turn, according to Reuters, the Academy emphasized that through its study it was possible to identify that “resources in schools are much more important for the future success of students in the labor market than previously thought.”
Meanwhile, they explained about the work of Angrist and Imbens that they both demonstrated “how precise conclusions about cause and effect can be drawn from natural experiments.”
‘Card’s studies on fundamental questions for society and the methodological contributions of Angrist and Imbens have shown that natural experiments are a rich source of knowledge. His research has substantially improved our ability to answer key causal questions, which has been of great benefit to society, “said Peter Fredriksson, Chairman of the Economic Sciences Prize Committee.
Last Monday Ardem Patapoutian and David Julius were announced as winners of the Nobel Prize in Medicine; while Giorgio Parisi, Syukuro Manabe and Klaus Hasselmann won Physics, for their work to decipher the climate; while Benjamin List and David MacMillan obtained Chemistry for a tool for the construction of molecules. In turn, the 72-year-old Tanzanian novelist Abdulrazak Gurnah became the second black writer of the Africa Saharan woman who wins a Nobel Prize in Literature.
Finally, on Friday the Philippine journalist was awarded Maria Ressa and the russian Dmitry Muratov with the Nobel Peace Prize. “Ms. Ressa and Mr. Muratov are receiving the Peace Prize for their courageous fight for freedom of expression in the Philippines and Russia,” explained from the Academy.