Why This Year’s Nobel Prize in Economics Changes Nothing on the…

Why This Year’s Nobel Prize in Economics Changes Nothing on the...

After the Nobel Prize in Economics was announced this year, many, among them Paul Krugman, argued that this year’s Prize was a vindication of their arguments in favor of a higher minimum wage. 

All this excitement came because one of the winners of this year’s Prize is David Card, who is known for his work with Alan Krueger on the minimum wage. In a study published in 1994, Card and Krueger argue that increasing the minimum wage in New Jersey led to lower, not higher unemployment. However, this study has major flaws, which make it a very weak basis to use in favor of a minimum wage. 

Before we continue, it is worth mentioning that David Card did not receive his Nobel Prize in Economics for his work on the minimum wage, but rather for his

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