Recently the Nobel prize in economics went to scholars whose evidence-based research gives scientific confirmation to policies that are very compatible with faith-based opinions.
The Bible is very concerned about the well-being of workers, their fair treatment and their just wage. The Exodus is the foundational story of God's liberation of people being mistreated as workers in Egypt. When overseers demanded increased production with fewer resources, the people cried out to God and God delivered them. Some have called the Exodus a divinely sanctioned labor strike.
"You shall not withhold the wages of the poor and needy laborers, whether other Israelites or aliens who reside in your land in one of your towns. You shall pay them their wages daily before sunset, because they are poor and their livelihood depends on them; otherwise they might cry to the Lord against you, and you would incur guilt." (Deuteronomy 23:14-15)
And there is Jesus' fascinating parable of the laborers in the vineyard. A landowner hired laborers at different times throughout the day, including the last hour. At the end of the day, he gave each worker one denarius, the usual daily wage, enough for tomorrow's needs. ("Give us this day, our daily bread." -- The Lord's Prayer)
Scripture consistently teaches that God pays attention to the poor and expects us to deal justly with low-income workers. From a Biblical point of view, it is a human right to have honest work and a living wage. And the Bible insists on a level playing field for immigrants and aliens. "The same law applies both to the native-born and to the foreigner residing among you. " (Exodus 12:49)
The Bible repeatedly demands that special care be taken for three categories of people: "widows, children, and the alien/foreigner/immigrant living among you." Because they are especially vulnerable, God demands for them special compassion and protection.
Prompt pay, a living wage and special consideration for the poor, the vulnerable, and the immigrant. These are Biblical economic values.
This year's Nobel prize winners pioneered economic research showing that these values are also good economics.
One half of the Nobel prize went to David Card. His research with the late Alan Kruegar found that an increase in the minimum wage does not create unemployment or hinder hiring among younger or lower-skilled workers. When New Jersey raised it's minimum wage from $4.25 to $5.05 in 1993, it had no impact on the number of jobs in New Jersey when compared with restaurants in bordering communities in eastern Pennsylvania where there was no raise. Higher wages do not cause fewer jobs or higher unemployment. But higher pay can attract more applicants, boosting labor supply.
Card's research also found that an influx of immigrants does not lower earnings or take away jobs from native workers, though earlier immigrants can be negatively affected. When Cuba let 125,000 people leave in the 1980 Mariel boatlift, Miami experience a 7% increase in the city's workforce. Card compared wages and employment in four other cities and found that there were no negative effects for Miami residents with low levels of education. Further studies found that increased immigration can have a positive impact on income for people born in this country.
Card and Kruegar also found that an influx of immigrants into a city doesn't cost native workers their jobs or lower their earnings.
The other half of the Nobel prize went to Joshua Angrist and Guido Imbens for their groundbreaking methods that help researchers draw clearer conclusions about cause and effect using real-world situations.
Using their methods, Dartmouth economists surveyed lottery winners who were awarded their money incrementally over many years instead of in one lump sum. Did the winners quit their jobs? No. Some changed their work, but the new guaranteed income did not change how much people worked. Proponents of a guaranteed minimum income or a universal basic income have found encouragement from these results.
Another paper by Angrist and Kruegar found that students who were required by educational compulsory laws to stay in school a year longer had higher earnings.
The Bible is full of economic wisdom. It's teachings are based on a fundamental understanding of community. Every person is created in the image of God and worthy of compassion and justice. But the community also has a higher responsibility for the well-being of the poor and marginalized. This year's Nobel laureates found that good economics and Biblical ethical values can go together. I find that encouraging.