THE NOBEL ECONOMICS prize has been awarded to Claudia Goldin, a professor at Harvard University, for advancing understanding of women’s labour market outcomes.

Professor Goldin is only the third woman to win the prize, which was announced by Hans Ellegren, secretary-general of the Royal Swedish Academy of Sciences, in Stockholm today.

Prof Goldin’s research revealed the main factors and sources which contribute to the gender pay gap and provided the first comprehensive account of women’s earnings and labour market participation through the centuries.

Jakob Svensson, chairman of the Committee for the Prize in Economic Sciences, said: “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.”

While the research does not offer solutions, but it allows policymakers to tackle the entrenched problem, said 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,” he said.

“So it’s a complicated policy question because, if you don’t know the underlying reason, a certain policy won’t work.”

However, “by finally understanding the problem and calling it by the right name, we will be able to pave a better out forward”, said Hjalmarsson, who added that Prof Goldin’s discoveries have “vast societal implications”.

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

Of receiving the award, Prof Goldin (77) “was surprised and very, very glad,” Mr Ellegren said.

It follows the awards in medicine, physics, chemistry, literature and peace that were announced last week.

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 chairman 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.

By trawling through the archives and compiling and correcting historical data, this year’s economic sciences laureate Claudia Goldin has been able to present new and often surprising facts. She has also given us a deeper understanding of the factors that affect women’s… pic.twitter.com/uxd4Q188KG

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

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

A week ago, Hungarian-American Katalin Kariko and American Drew Weissman won the Nobel Prize in medicine.

On Tuesday, the physics prize went to French-Swedish physicist Anne L’Huillier, French scientist Pierre Agostini and Hungarian-born Ferenc Krausz.

US scientists Moungi Bawendi, Louis Brus and Alexei Ekimov won the chemistry prize on Wednesday.

They were followed by Norwegian writer Jon Fosse, who was awarded the prize for literature.

And on Friday, jailed Iranian activist Narges Mohammadi won the peace prize.

The prizes are handed out at awards ceremonies in December in Oslo and Stockholm.

They carry a cash award of 11 million Swedish kronor (£820,000). Winners also receive an 18-carat gold medal and diploma.