Wednesday, January 19

2021 Nobel Prize in Economics: David Card, Joshua Angrist and Guido Imbens win the award for their analysis of the labor market

This year’s Nobel Prize in Economics has been shared between Canadian David Card, American Joshua Angrist and Dutch Guido Imbens.

When the award was announced on Monday, it was noted that the three economists used natural experiments to “answer important questions from society,” such as how to understand the connection between economic policies and other events.

Half of the award goes to David Card for his contribution to the economics of labor, while the other is shared by Angrist and Imbens for “his methodological contributions to the analysis of relationships betweenusathe“.

The award ceremony will be on December 10 in Stockholm. The prize, which will be divided by the three, is SEK 10 million, the equivalent of approximately US $ 1.1 million.

The Royal Swedish Academy of Sciences said that all three had “Completely reformed empirical work in economics“.

“Card’s studies on fundamental societal issues and the methodological contributions of Angrist and Imbens have shown that natural experiments are a rich source of knowledge,” said Peter Fredriksson, Chairman of the Committee on Economic Sciences.

“His research has substantially improved our ability to answer key causal questions, which has been of great benefit to society.”

Card, for example, analyzed the impact of minimum wage increases in employment in the state of New Jersey, in the United States.

Their findings prompted the researchers to revise their view that such increases should always lead to declines in employment.

The most prestigious

The Nobel Prize in Economics is the last to be awarded annually.

Advertisement from the Royal Swedish Academy of Sciences.

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This is the last of the Nobel that are awarded every year.

Unlike the rest, he is not one of the original Nobel.

It was created by the Central Bank of Sweden, Sveriges Riskbank, in 1968. Still, it is the most prestigious award in the world in the area of ​​Economics.

The other Nobel prizes were established by the will of Alfred Nobel in 1895.

Last year, the award was given to American economists Paul Milgrom and Robert Wilson for “improvements in auction theory and inventions of new auction formats.”

They employed game theory, that uses mathematics to study conflict in decision-making, and strategy in social situations, to explore the behavior of bidders, which in turn helped develop formats for the sale of aircraft landing spaces, spectra of radio and emissions trading.

In 2019 it was awarded to Abhijit Banerjee, Esther Duflo and Michael Kremer, for their work on the causes and remedies of poverty.

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