• The Nobel Prize in Economics was awarded to three economics professors at U.S. universities.
• The prize recognizes their work in determining causal relationships in society.
• Their work is being used in other fields.

'Revolutionized Empirical Research'

The statement issued by the Nobel committee indicated that all three economists had "provided us with new insights about the labor market and shown what conclusions about cause and effect can be drawn from natural experiments." More specifically, the "natural experiments" used by the three winners examined how "chance events or policy changes result in groups of people being treated differently, in a way that resembles clinical trials in medicine."

Peter Fredriksson, chair of the Economic Sciences Prize Committee, observed that the three economists have demonstrated that natural experiments are a "rich source of knowledge." He added, "Their research has substantially improved our ability to answer key causal questions, which has been of great benefit to society."

The Nobel committee hailed the winners for having "revolutionized empirical research." The statement also indicated that the methodologies developed by these researchers have been used in fields other than economics.

Labor Market Impacts

Card used natural experiments to examine the impact of minimum wages, immigration, and education on the labor market. Based on research from the early 1990s, he concluded that increases in the minimum wage do "not necessarily lead to fewer jobs.

Angrist and Imbens used Card's studies as a springboard for their own work. They developed methodologies for improving the interpretation of data gathered in such natural experiments.

Winners made key contributions to the analysis of causal relationships.

Nobel Memorial Prize in Economic Sciences

What Is Nobel Memorial Prize in Economic Sciences?

The Nobel Memorial Prize in Economic Sciences is a prestigious award acknowledging outstanding contributions to the field of economics. It is commonly called the Nobel Prize in Economics.

• The Nobel Prize in Economic Sciences is an award acknowledging outstanding contributions to the filed of economics and is awarded by the Nobel Prize Committee.
• Nobel Prize in Economic Sciences, named after Swedish entrepreneur Alfred Nobel, was initiated in 1968 by Sweden's central bank.
• The Nobel Prize awards are presented at the annual Nobel Prize Award Ceremony in Stockholm, Sweden each year on Dec. 10, the anniversary of Nobel's death.

The esteemed Nobel Prize in Economics is awarded yearly to individuals making exceptional contributions to the field of economics. In his will, Swedish scientist, inventor, entrepreneur, author, and pacifist Alfred Nobel, the man who the prize is named after, left much of his large estate to establish awards in physics, chemistry, physiology or medicine, literature, and peace.