The John Bates Clark Medal is one of the most prestigious awards in the field of economics, often described as the second most important prize after the Nobel Memorial Prize in Economic Sciences. It is awarded by the American Economic Association (AEA) to recognize exceptional work by economists early in their careers.
The medal was established in 1947, named after John Bates Clark (1847–1938), a pioneering American economist known for developing the marginal productivity theory of distribution—the idea that income distribution corresponds to the marginal productivity of labor and capital. The AEA created the medal to honor his legacy and to encourage young scholars making significant contributions to economic science.
The purpose of the medal is to recognize an economist under the age of 40 who has made the most significant contribution to economic thought and knowledge. The age limit was set to highlight early-career excellence and to identify rising stars in the field. The recipient must be working in the United States at the time of the award, though they need not be an American citizen. This means that non-U.S. citizens employed at U.S. institutions are eligible.
Originally, the medal was awarded every two years from 1947 until 2009. Beginning in 2010, it became an annual award, reflecting both the expansion of the economics profession and the growing number of outstanding young economists. In rare cases, if the AEA deems that a major contribution is a result of joint work, the medal may be shared by two economists in a single year.
The selection process is managed by the American Economic Association. A selection committee composed of prominent economists reviews nominations and evaluates the candidates’ research contributions in terms of originality, rigor, and impact. The winner is then chosen based on consensus within the committee. The medal is typically announced in the spring (around April), often in conjunction with AEA events or major conferences.
The Clark Medal is widely regarded as a predictor of future Nobel laureates. A significant number of its recipients later go on to win the Nobel Memorial Prize in Economic Sciences—examples include Paul Samuelson, James Tobin, Kenneth Arrow, Robert Solow, Milton Friedman, Joseph Stiglitz, Paul Krugman, and Esther Duflo. This pattern has made the medal a symbol of both excellence and long-term influence in economics.
The medal does not come with a large monetary award; its prestige is primarily academic and professional. Winning it can greatly enhance an economist’s career prospects, leading to increased research funding, invitations to major policy discussions, and recognition as a leading voice in the discipline.
In terms of subject matter, recipients of the Clark Medal have worked across nearly every branch of modern economics — from macroeconomics, microeconomic theory, development economics, and labor economics, to behavioral, public, and experimental economics. The diversity of fields represented reflects the evolution of economics itself over the decades.
Recent recipients illustrate this breadth. Gabriel Zucman (2023) was honored for his research on global inequality and tax evasion; Philipp Strack (2024) for his theoretical work on behavioral and informational economics; and Stefanie Stantcheva (2025) for her contributions to public economics and the study of taxation, innovation, and social preferences. Earlier winners include Esther Duflo, Raj Chetty, Matthew Gentzkow, and Amy Finkelstein, each of whom reshaped their fields through data-driven, innovative research.
The importance of the Clark Medal lies not just in prestige but also in its role as a reflection of where the economics profession is heading. Each year’s recipient typically signals the methods, topics, or policy areas gaining prominence in academic economics. In this way, the award serves as both recognition and a guidepost for future research.
While the medal is highly respected, it has also faced criticism. Some scholars argue that the age limit can disadvantage economists who make major contributions later in their careers. Others note that the eligibility rule—requiring recipients to work in the U.S.—excludes many deserving economists based elsewhere, limiting the medal’s international inclusivity. There has also been historical underrepresentation of women, though recent decades have seen growing diversity among recipients.
In summary, the John Bates Clark Medal is an annual award given by the American Economic Association to the most outstanding economist under 40 working in the United States. It was founded in 1947 to honor John Bates Clark’s legacy and to recognize groundbreaking early-career research. The medal carries immense prestige, has historically predicted future Nobel laureates, and continues to represent a benchmark of excellence and innovation in economic science.