Overturning 'conventional wisdom' with 'natural experiments'
Via Reuters ... "Economists David Card, Joshua Angrist and Guido Imbens won the 2021 Nobel economics prize on Monday for pioneering "natural experiments" to show real-world economic impacts in areas from minimum wage increases in the U.S. fast-food sector to migration from Castro-era Cuba."
"One experiment by Card, 65, on the impact on the fast-food sector of a minimum wage increase in the U.S. state of New Jersey in the early 1990s upended conventional wisdom in economics that such increases should always lead to job losses.
His work on the topic, often in collaboration with prominent economist, Alan Krueger, who died in 2019, has been used as empirical evidence to push for legislation, including by the Biden administration, for a $15 minimum wage in the United States."
Great to see that evidence beats so-called conventional wisdom and common sense.