Claudia Goldin wins Nobel Economics Prize for ‘advancing understanding of women’s labour market outcomes’

BREAKING NEWS
The Royal Swedish Academy of Sciences has decided to award the 2023 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Claudia Goldin “for having advanced our understanding of women’s labour market outcomes.”#NobelPrize pic.twitter.com/FRAayC3Jwb

— The Nobel Prize (@NobelPrize) October 9, 2023

“Understanding women’s role in the labour market is important for society. Thanks to Claudia Goldin’s groundbreaking research, we now know much more about the underlying factors and which barriers may need to be addressed in the future,” said Jakob Svensson, chair of the Committee for the Prize in Economic Sciences, according to news agency Associated Press.

Goldin does not offer solutions, but her research allows policymakers to tackle the entrenched problem, said economist Randi Hjalmarsson, a member of the prize committee. “She explains the source of the gap, and how it’s changed over time and how it varies with the stage of development. And therefore, there is no single policy,” Hjalmarsson said. “So it’s a complicated policy question because if you don’t know the underlying reason, a certain policy won’t work.”

(From left) Jakob Svensson, chairman of the Royal Swedish Academy of Sciences, Hans Ellegren, permanent secretary Royal Academy of Sciences and Randi Hjalmarsson, member of the committee for the prize in economic science in memory of Alfred Nobel announce the Nobel Prize in Economics, in Stockholm on Monday. (Photo: AP)

However, “by finally understanding the problem and calling it by the right name, we will be able to pave a better route forward,” Hjalmarsson said.

Goldin had to become a data sleuth as she sought to fill in missing data for her research, Hjalmarsson said. For parts of history, systematic labor market records did not exist, and, if they did, information about women was missing.

“So how did Claudia Goldin overcome this missing data challenge? She had to be a detective to dig through the archives to find novel data sources and creative ways to use them to measure these unknowns,” Hjalmarsson said.

In Goldin’s analysis, a woman’s role in the job market and the pay she receives aren’t influenced just by broad social and economic changes. They also are determined partly by her individual decisions about, for example, how much education to get.

Often young girls make decisions about future work by looking at their own mother’s participation, each generation “learning from the successes and failures of the preceding generation,” Hjalmarsson said.

The process of evaluating prospects as times change “helps explain why change in labor market gender gaps has been so slow,” she said.

Of receiving the Nobel, Goldin, 77, “was surprised and very, very glad,” Ellegren said.

The economics award was created in 1968 by Sweden’s central bank and is formally known as the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel.

Last year’s winners were former Federal Reserve Chair Ben Bernanke, Douglas W. Diamond and Philip Dybvig for their research into bank failures that helped shape America’s aggressive response to the 2007-2008 financial crisis.

Only two of the 92 economics laureates honoured have been women.

The prizes are handed out at awards ceremonies in December in Oslo and Stockholm. They carry a cash award of 11 million Swedish kronor (about $1 million). Winners also receive an 18-carat gold medal and diploma.