Get subscribed to our newsletter
Get interesting updates to your email inbox.
Three US academicians from prestigious universities were on Monday conferred the Nobel Prize for Economics for their contribution in adopting the techniques of clinical trials to understand the impact of cause and effect in the economic phenomenon, especially the labour market and its dynamics.
The Royal Swedish Academy of Sciences announced that the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2021, or the Economics Nobel, goes to Economics Professors David Card, "for his empirical contributions to labour economics" and Joshua D. Angrist and Guido W. Imbens "for their methodological contributions to the analysis of causal relationships".
While Card, 65, Professor of Economics at the University of California, Berkeley, will get half of the 10 mn Swedish kronor ($1.14 mn) prize amount, the other half will be shared between Angrist, 61, the Ford Professor of Economics at the Massachusetts Institute of Technology, and Imbens, 58, the Applied Econometrics Professor and Professor of Economics at Stanford University.
According to the Society, the cause and effect relationship underlines key questions in social sciences, particularly economics, say the effect on education on future earning capacity. However, finding answers is tricky due to lack of comparison - in this case, the effect of not continuing education, but the three laureates "have shown that it is possible to answer these and similar questions using natural experiments".
"The key is to use situations in which chance events or policy changes result in groups of people being treated differently, in a way that resembles clinical trials in medicine," it said. The approach of the laureates has spread to other fields and revolutionized empirical research, the Academy said.
The card has used natural experiments to analyze the labour market effects of minimum wages, immigration and education, and his "studies from the early 1990s challenged conventional wisdom, leading to new analyses and additional insights".
"The results showed, among other things, that increasing the minimum wage does not necessarily lead to fewer jobs. We now know that the incomes of people who were born in a country can benefit from new immigration, while people who immigrated at an earlier time risk being negatively affected. We have also realised that resources in schools are far more important for students' future labour market success than was previously thought," an Academy statement said.
However, it noted that data from a natural experiment are difficult to interpret. Taking the example of education, it can be seen that the results may differ for various members of a group. And here came Angrist and Imbens, who in the mid-1990s, "solved this methodological problem, demonstrating how precise conclusions about cause and effect can be drawn from natural experiments".
"Card's studies of core questions for society and Angrist and Imbens' methodological contributions have shown that natural experiments are a rich source of knowledge. Their research has substantially improved our ability to answer key causal questions, which has been of great benefit to society," Economic Sciences Prize Committee Chair Peter Fredriksson said. (IANS/JB)
Keywords: Nobel Peace Price, Economics, Universities, US.
The month of August had brought the country a step closer to reaching pre-Covid levels of sales of auto fuels. A firm sign that fuel demand recovery is progressing in line with general economic recovery being seen in the country.
While sales of petrol have already crossed pre-Covid levels more than a month ago, diesel sales have begun inching up and is just 8 per cent short of touching pre-Covid levels as of August 15.
State-owned fuel retailers have sold 0.94 million tonnes (mt) of petrol between August 1-15, 2021. This is a 9.4 per cent increase over dales seen in the same period of the previous year and 3.7 per cent above 0.95 mt sales in the first half of August 2019.
With respect to diesel, the most used fuel in the country, sales have jumped 18.5 per cent to 2.11 million tonnes during August 1-15 after the second wave of pandemic and resultant lockdowns in various parts of the country affected demand and sales. In 2019, diesel sales in the first half of August stood close to 20 mt or around 8 per cent short of current figures.
Dales of auto fuel had returned to almost normal levels in March before the second wave of the pandemic started affecting demand which fell abruptly in the months of April and May. There were signs of improvement from June onwards and the trend has continued till now.
S.M. Vaidya, chairman of IndianOil had said last month that petrol demand has reached well over pre-Covid levels while diesel is fast catching up and should be above 2019 levels by Diwali. (IANS/SB)
Giving Indian women greater control over their wages encouraged them to enter the labor force and liberalized their beliefs about working women, according to a new study.
The study, by economists from the Yale University in Connecticut, US, on women from Madhya Pradesh showed that women who had access to the banking resources were more likely to report in surveys that a working woman made "a better wife" and that husbands with working wives were better spouses and providers. They also were less likely to say women who work outside the home bear social costs for it.
ALSO READ: The rise of women entrepreneurs in India
"Economics research often assumes that a country's men and women embrace the same cultural norms, but our study highlights the fact that norms can be differently experienced and held within the same country or culture," said Rohini Pande, Professor of Economics in Yale's Faculty of Arts and Sciences.
"Improving a woman's access to her earnings should cause her to work less because she can make the same amount of money with less effort. That we found women work more suggests that some women would prefer to work but are potentially being constrained by social stigma perceived by their husbands -- specifically, that working wives diminish their husband's social status," she added.
Women who work outside the home bear social costs for it.Wikimedia Commons
For the study, published in the American Economic Review, the team collaborated with the Madhya Pradesh government and banking partners to enable direct deposit of women's wages from the federal workfare program into their own bank accounts rather than into a male-controlled household account.
They conducted a randomized controlled trial covering 197 village clusters and surveyed a total of 4,300 women.
ALSO READ: 10 Women Rights that every woman should be privy to
The study found an overall increase in labor supply among digitally empowered women compared to women who only received a bank account. They were 28 percent more likely to have participated in the workfare program during the past year than were the women who only received a bank account and 13 percent more likely to report any paid work in the previous month, according to the findings.
The participants were surveyed to measure their thoughts about working and non-working women. The results showed that, compared to women who received only bank accounts, digitally empowered women liberalized their personal beliefs about women's work. (IANS/KB)
A Class 12 student from Uttar Pradesh’s Aligarh district has secured a place at the prestigious Stanford University in the US with a 100 percent scholarship.
Manu Chauhan, who belongs to Akrabad village was studying at VidyaGyan, a residential co-ed school that offers free world-class education to rural, underprivileged meritorious students from families with an annual income of less than Rs 1 lakh.
He has been selected at Stanford University to study International Relations and Economics on a 100 percent scholarship. He will be joining in August end.
Coming from a poor background where his father toiled as a salesman, struggling to fulfill the necessities of the family, Manu is the only child.
Manu was able to secure admission to VidyaGyan, where only 250 students are selected out of the approximate 250,000 applicants every year.
At VidyaGyan, run by the Shiv Nadar Foundation, Manu excelled and his teachers motivated him to become more confident and guided him step-by-step to achieve bigger milestones.
As a result, he secured 95.4 percent in Class 10, won an outstanding performance award in Assessment of Scholastic Skills through Educational Testing twice, became the best speaker in intra-class debate competitions, and won the gold medal in Open State Level Table-Tennis championship in 2018.
“I will give the entire credit for my journey to my teachers at VidyaGyan who taught me, encouraged me and counseled me at every stage,” he told IANS.
Manu aspires to take up a job at the UN after completing his study.
Manu aims to work in the field of international relations and help drive the development agenda.
His long-term dream is to contribute to toetoe education of underprivileged children in India so that he can extend the gift of education to other deserving students and help improve their lives. (IANS/AD)