UPSC Articles
Nobel prize in Economics 2021
Part of: Prelims
Context The Nobel prize for economics was awarded to economist David Card for research that showed
- An increase in minimum wage does not hinder hiring
- An influx of immigrants into a city doesn’t cost native workers jobs or lower their earnings
Two others shared the award for developing ways to study these types of societal issues.
Key takeaways
- Canadian-born Dr. Card of the University of California, Berkeley, was awarded one half of the prize for his research on how minimum wage, immigration and education affect the labour 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.
- Unlike the other Nobel prizes, the economics award wasn’t established in the will of Alfred Nobel but by the Swedish central bank in his memory in 1968, with the first winner selected a year later. It is the last prize announced each year.
