For decades, advocates for a higher minimum wage have been quoting the economic research of David Card to support their arguments.
That's because Card, a professor of economics at University of California, Berkeley, demonstrated through natural experiments that boosting the minimum wage does not necessarily lead to higher unemployment levels.
Today, the Guelph, Ontario–born economist won the Nobel Prize in Economic Sciences. He shared the award with Massachusetts Institute of Technology econommist Joshua Angrist and Stanford University economist Guido Imbens.
Card's research also demonstrated that new immigrants have little or no impact on wages of people born in the country where they move.
In the past, he's told the New York Times that economic arguments against immigration are "irrelevant".
Card will receive half of the cash component of the 10 million Swedish kroner (CDN$1,426,662.49) prize.
The other half will be shared by Angrist and Imbens, who researched the impact of students spending an extra year in school through natural experiments.
Natural experiments look at what happens to individuals or groups of individuals when exposed to experimental and control conditions where not all variables can be dictated by researchers.
"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," the Royal Swedish Academy of Sciences stated in a news release. "We have also realised that resources in schools are far more important for students' future labour market success than was previously thought."