James Heckman on Facts, Evidence, and the State of Econometrics

Nobel Laureate James Heckman shares insights on econometrics and the importance of addressing selection bias for accurate economic measurement. He discusses how labor statistics for minorities can be distorted by incarceration rates and how education shifts affect wage trends for women. Heckman critiques randomized control trials, emphasizing that while they can reduce bias, they also obscure economic interpretations. He highlights the necessity of incorporating economic theory into data analysis, advocating for humility in the face of complex empirical findings.