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Guido Imbens, David Card and Joshua Angrist honored with Nobel Prize in Economics
The Nobel Prize for Economics this year goes to three labor market researchers from the USA and Canada. David Card, Joshua Angrist and Guido Imbens received the award because they were the first to use natural experiments to research economic relationships. Peter Frederiksson, Speaker of the Nobel Prize Committee in Economics. O-TON PETER FREDERIKSSON, CHAIRMAN OF THE NOBEL PRIZE COMMITTEE FOR ECONOMY: “The research method you have developed is very important because it allows us to investigate questions more credibly than has previously been possible. By performing natural experiments with random samples, we understand them Causal relationships better than we could before. ” David Card, for example, conducted an experiment in the early 1990s to investigate how an increase in the minimum wage would affect the labor market. In addition, the minimum wage was raised in hundreds of fast food restaurants in New Jersey. Card found that, contrary to previous assumptions, raising the minimum wage would not result in layoffs.
The three researchers had revolutionized economics with a new research method.