The winners of the 2021 Nobel Prize in Economic Sciences were announced in Stockholm on October 11. A trio of economists will share the award. Half of the prize, worth more than $1 million, will go to Canadian-born David Card. The other half will be shared between American Joshua Angrist and Dutchman Guido Imbens. All three winners have American citizenship. The winners answered questions without a field or laboratory experiment (e.g. How does the date of birth affect a child's future term academic results?)There is only a few hours difference between children born in the evening of December 31 and in the morning of January 1. However, in some countries, they start school almost a year apart. It is impossible to study society using controlled experiments. However, this year's Nobel laureates have created a method for evaluating the results of natural experiments based on real-life situations. For instance, in one of the two similar regions (city or state) only one component changes, while the others remain the same. So, there is a real-life experiment, and economists study its results. For example, one state in the US suddenly raises the minimum wage or extends the school year, while no such thing happens in neighboring countries. When analyzing a situation, researchers highlight the consequences and determine how they have ultimately affected the well-being of individuals or society as a whole. Nobel Prize winners have created a scientific approach to evaluating the results of all these natural experiments. It has been proven that they can provide answers to the core questions for society. Thanks to the laureates, the role of empirical research in economic science has been revolutionized. Owing to them, the scientific approach to finding answers to empirical questions based on data from natural and field experiments has radically changed.
