New Delhi | Jagran World Desk: 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.
"This year’s Laureates – David Card, Joshua Angrist and Guido Imbens – have provided us with new insights about the labour market and shown what conclusions about cause and effect can be drawn from natural experiments. Their approach has spread to other fields and revolutionised empirical research," the statement by the Royal Swedish Academy of Sciences read.
The Norwegian Nobel Committee announced David Card has analysed the labour market effects of minimum wages, immigration and education using natural experiments. The results showed, among other things, that increasing the minimum wage does not necessarily lead to fewer jobs.
The Nobel Committee also said Laureates Joshua Angrist and Guido Imbens showed what conclusions about cause and effect can be drawn from natural experiments. The framework developed by them has been widely adopted by researchers who work with observational data.
"Their research has substantially improved our ability to answer key causal questions, which has been of great benefit to society,” said Peter Fredriksson, chair of the Economic Sciences Prize Committee.
Further, the Nobel Committee noted that the Laureates’ contributions from the early 1990s demonstrate that it is possible to answer important questions about cause and effect using natural experiments. Their contributions complement and strengthen one another: Angrist and Imbens’ methodological insights about natural experiments and Card’s applications of this approach to important questions led the way for other researchers.
"The work of the Laureates has revolutionised empirical research in the social sciences and significantly improved the ability of the research community to answer questions of great importance to us all" the Nobel Committee concluded.
Nobel Prize comes with a gold medal and 10 million Swedish kronor (over $1.14 million). The prize money comes from a bequest left by the prize’s creator, Swedish inventor Alfred Nobel, who died in 1895.
Posted By: Sugandha Jha