Their paper 'has shaken up the field at a very fundamental level,вЂќ said Arindrajit Dube, an economics professor at the University of Massachusetts, Amherst. The higher pay would also attract more applicants, boosting labor supply.

In other cases, if a company is a major employer in a particular area, it may be able to keep wages particularly low, so that it could afford to pay a higher minimum, when required to do so, without cutting jobs. One conclusion was that companies are able to pass on the cost of higher wages to customers by raising prices. Their findings sparked interest in further research into why a higher minimum wouldnвЂ™t reduce employment. Those views were largely based on traditional economic notions of supply and demand: If you raise the price of something, you get less of it.Д«y 2000, however, just 46% of the AEAвЂ™s members said minimum wage laws increase unemployment, largely because of Card and Krueger.

As noted by the Economist magazine, in 1992 a survey of the American Economic AssociationвЂ™s members found that 79% agreed that a minimum wage law increased unemployment among younger and lower-skilled workers. Contrary to previous studies, he and his late research partner Alan Krueger found that an increase in the minimum wage had no effect on the number of employees.Д¬ard and Krueger's research fundamentally altered economistsвЂ™ views of such policies. In a study published in 1993, Card looked at what happened to jobs at Burger King, KFC, Wendy's and Roy Rogers when New Jersey raised its minimum wage from $4.25 to $5.05, using restaurants in bordering eastern Pennsylvania as the control - or comparison - group. Such research made economics more applicable to everyday life, provided policymakers with actual evidence on the outcomes of policies, and in time spawned a more popular approach to economics epitomized by the blockbuster bestseller вЂњFreakonomics,вЂќ by Stephen Dubner and Steven Levitt. Together, they helped rapidly expand the use of вЂњnatural experiments,вЂќ or studies based on observing real-world data. The Royal Swedish Academy of Sciences said the three вЂњcompletely reshaped empirical work in the economic sciences.вЂќ The other half was shared by Joshua Angrist of the Massachusetts Institute of Technology and Dutch-born Guido Imbens of Stanford University for their framework for studying issues that can't rely on traditional scientific methods. Two others shared the award for developing ways to study these types of societal issues.Д¬anadian-born David Card of the University of California, Berkeley, was awarded half of the prize for his research on how the minimum wage, immigration and education affect the labor market. STOCKHOLM - (AP) - A U.S.-based economist won the Nobel prize in economics Monday for pioneering research that transformed widely held ideas about the labor force, showing how an increase in the minimum wage doesnвЂ™t hinder hiring and immigrants don't lower pay for native-born workers. (Claudio Bresciani/TT via AP) (Claudio Bresciani) Octoat 5:32 pm EDT By CHRISTOPHER RUGABER, DAVID McHUGH and DAVID KEYTON From left on the screen above are the winners David Card of the University of California at Berkeley Joshua Angrist from the Massachusetts Institute of Technology and Guido Imbens from Stanford University.

Nobel Economics Permanent Secretary of the Royal Swedish Academy of Sciences Goran K Hansson, center, announces the 2021 Nobel prize for economics, flanked by members of the Royal Swedish Academy of Sciences Peter Fredriksson, left, and Eva Mork, during a press conference at the Royal Swedish Academy of Sciences, in Stockholm, Sweden, Monday, Oct.

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