David Card, the Winner of the 2021 Nobel Prize for Economics, Pays Tribute to the Late Alan Krueger

But Clinton was persuaded finally in 1996 to raise it in stages to $5.15, in part by Card and Krueger’s paper. Krueger himself was by then working in Clinton’s administration as chief economist at the Labor Department. (Krueger would later be assistant treasury secretary for economic policy and chairman of the Council of Economic Advisers under President Barack Obama.) “Now, I’ve studied the arguments and the evidence for and against a minimum wage increase,” Clinton said in his 1995 State of the Union address. “I believe the weight of the evidence is that a modest increase does not cost jobs, and may even lure people back into the job market.” He was talking about Card and Krueger’s landmark paper.

This paradigm shift didn’t sit well with the old guard. Nobel laureate James M. Buchanan had the following comment for The Wall Street Journal:

The inverse relationship…

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