Economics Nobel Prize 2021 winners are 3 US-based economists for research on wages, jobs

abc11.com
4 min read
standard
The Economics Nobel Prize 2021 winners are 3 US-based economists, David Card, Guido Imbens and Joshua Angrist, for their research on wages and jobs.
STOCKHOLM -- A U.S.-based economist won the Nobel prize for economics Monday for pioneering research that showed an increase in minimum wage does not lead to less hiring and immigrants do not lower pay for native-born workers, challenging commonly held ideas. Two others shared the award for creating a way to study these types of societal issues.Canadian-born David Card of the University of California, Berkeley, was awarded half of the prize for his research on how minimum wage, immigration and education affect the labor 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.The Royal Swedish Academy of Sciences said the three have "completely reshaped empirical work in the economic sciences."Card looked at what happened 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.Card's minimum wage research fundamentally altered economists' views of such policies. As noted by the Economist magazine, in 1992 a survey of the American Economic Association's members found that 79% agreed that a minimum wage law increased unemployment among younger and lower-skilled workers. Those views were largely based on traditional economic views of supply and demand: If you raise the price of something, you get less of it.By 2000, however, just 46% of the AEA's members said minimum wage laws increase…
CHRISTOPHER RUGABER, DAVID McHUGH and DAVID KEYTON
Read full article