Officially known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, the names of the winners were announced in Stockholm on Monday by the Royal Swedish Academy of Sciences.
David Card has been awarded the 2021 prize in economic sciences “for his empirical contributions to labour economics,” the official Twitter handle said.
Joshua D Angrist and Guido W Imbens wpn the award “for their methodological contributions to the analysis of causal relationships.”
“The 2021 economic sciences laureates 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 academy further said.
“The winners have demonstrated that many of society’s big questions can be answered. Their solution is to use natural experiments – situations arising in real life that resemble randomised experiments.
“In one example David Card and Alan Krueger (now deceased) used a natural experiment to investigate how increased minimum wages affect employment. Using natural experiments, David Card has analysed the labour market effects of minimum wages, immigration and education,” it added.
The work by the winners 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.
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, the Academy observed.
David Card is from the University of California at Berkeley; Joshua Angrist from the Massachusetts Institute of Technology; and Guido Imbens is from Stanford University. Card is a Canadian, Angrist a US citizen while Imbens is of Dutch origin.