3 U.S.-based economists win economics Nobel Prize for work on "natural experiments"

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David Card, Joshua Angrist and Guido Imbens were honored for their work on drawing conclusions from unintended, or so-called "natural experiments."
Stockholm — Three U.S.-based economists have won the 2021 Nobel prize for economics for work on drawing conclusions from unintended experiments, or so-called "natural experiments." The winners were David Card of the University of California at Berkeley; Joshua Angrist from the Massachusetts Institute of Technology; and Guido Imbens from Stanford University. Their research has shed new light on such thorny issues as minimum wage hikes versus job growth and the impact of immigration on native-born workforces.

The Royal Swedish Academy of Sciences said the three had "completely reshaped empirical work in the economic sciences."

BREAKING NEWS:

The 2021 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded with one half to David Card and the other half jointly to Joshua D. Angrist and Guido W. Imbens.#NobelPrize pic.twitter.com/nkMjWai4Gn — The Nobel Prize (@NobelPrize) October 11, 2021

Card worked on research that used restaurants in New Jersey and in eastern Pennsylvania to measure the effects of increasing the minimum wage. He studied what happened when New Jersey raised its minimum wage from $4.25 to $5.05, using restaurants in bordering eastern Pennsylvania as a comparison group.

Contrary to previous studies, he and his late research partner Alan Krueger found that an increase in the minimum wage had no effect on the number of employees.…
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