The winners of the 2021 Nobel Prize for Economics were announced on Monday. Recognized Annual Award presented to three economists: Canadian David Card, Dutch Guido Impense and American Joshua Angrist.
The Royal Swedish Academy of Sciences has announced that three economists will be awarded 10 million Swedish crowns (approximately one million euros) for “revolutionizing empirical research in economics”.
The Novel Prize for Economics, established since 1969, is to be shared among the three winners thanks to their contributions to the analysis of labor economics and causal relationships.
Canadian economist David Kart will receive half the money to analyze the effects of the minimum wage, immigration and education on the labor market. For example, their research shows that increasing the minimum wage does not lead to fewer jobs.
These results “make a better understanding of how the labor market works than it did 30 years ago,” says the Academy Jury.
Since the 1990s, the idea that higher minimum wages are leading to lower employment rates has prevailed as wage costs for companies have increased. However, David Kart and his late colleague Alan Krueger concluded that the negative effects of this increase would remain.
Cardin’s studies have contributed to the field of education and its impact on the future success of students in the job market. Their results again called into question popular wisdom: according to previous research, the relationship between resources and school performance and job opportunities was weak.
Contrary to popular belief, studies of the card revealed that those documents did not consider the allocation that would offset the resources. Studies by a Canadian economist have considered this potential impact of the media on students’ future job success.
David Kart and his late partner, who compared the educational levels of people in the same city, but grew up in different states within the United States, aimed to compare their childhood and adolescent education to track the investment they made in each location.
The results of their study emerged as they found that students ’achievement also increases with teacher density. These findings inspired new research today. “There is a relatively strong empirical support to show that investments in education are successful for later students, especially from backward backgrounds.”
The award was presented to American Joshua Angrist and Dutch-American Guido Impense for their “systematic contribution to the analysis of causal relationships.”
Economists have been able to demonstrate how out-of-pocket decisions can be made from natural trials or circumstances that occur in real life.
His method is also used by randomized experiments with other researchers working with observation data and without complete control over who participates in the intervention.
The uniqueness of the three Nobel laureates in economics is that they all work at American universities: Card at Berkeley, Angrist at the Massachusetts Institute of Technology and Impense at Stanford. In addition, two of them have US passports.
This year’s edition ends with the absence of women. It should be noted that only Philippine journalist Maria Ressa was able to be on the list of winners for her condemnation of press freedom and abuse of power in the Philippines.
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