They showed what economic ideas really change reality – for example in the case of minimum wage. The 2021 Nobel Prize in Economics goes to Americans David Card, Joshua Angrist and Guido Imbens.
By Nikolaus Piper
A minimum wage of twelve euros results in more unemployed people. Immigration depresses local wages. Those who study longer earn more income later in life. Most economists have an opinion on statements like these, often shaped by their political attitudes. However, it is not that easy to determine if the opinions are correct because there are no simple tests. Finally, to take an example, the government cannot enact higher minimum wages for half of low wages and not for the other half. So how do you know what’s going to happen?