Alan Krueger, natural talent
A quiet revolutionary of economics died on March 16th
FEW ECONOMISTS can claim either to have successfully challenged the bedrock beliefs of their field or to have altered how governments pursue policies that affect millions. Alan Krueger, who died on March 16th, managed both. In research with David Card in the early 1990s, Mr Krueger showed, through careful data analysis, that increases in the minimum wage did not lead to reductions in employment, as standard models suggested they should. The research, which the authors summarised in a seminal book, “Myth and Measurement”, published in 1995, drew a scathing initial response. Critics assaulted their motivations, data and analysis until allowing, finally, that the pair had a point. Their work changed economics and politics. It also exemplified Mr Krueger’s career as both scholar and public servant.
This article appeared in the Finance & economics section of the print edition under the headline “Natural talent”
More from Finance and economics
China’s last boomtowns show rapid growth is still possible
All it takes is for the state to work with the market
What the war on tourism gets wrong
Visitors are a boon, if managed wisely
Why investors are unwise to bet on elections
Turning a profit from political news is a lot harder than it looks
Revisiting the work of Donald Harris, father of Kamala
The combative Marxist economist focused on questions related to growth
Donald Trump wants a weaker dollar. What are his options?
All come with their own drawbacks
Why is Xi Jinping building secret commodity stockpiles?
Vast new holdings of grain, natural gas and oil suggest trouble ahead