All about American-Turkish economist Daron Acemoglu’s Nobel journey

In October 2024, American and Turkish economist Daron Acemoglu, along with his collaborators Simon Johnson and James A. Robinson, was awarded the Nobel Prize in economics.

Their pioneering research on how institutions influence national prosperity earned them this prestigious recognition.

Acemoglu’s work has reshaped the way economists and policymakers understand economic development, particularly in showing how inclusive institutions can drive prosperity while extractive ones can hinder growth.

But who is Acemoglu, and how did his career lead to one of the highest honors in the field of economics?

Economist Acemoglu’s early life, education in Türkiye, United Kingdom

Daron Acemoglu was born on September 3, 1967, in Istanbul, Türkiye, into an Armenian family. His father, Kevork Acemoglu, was a prominent commercial lawyer and his mother, Irma, was the principal of an Armenian school.

• Acemoglu’s early education began at the Aramyan Uncuyan Armenian Primary School in Istanbul.
• He later attended Galatasaray High School, one of the country’s most prestigious institutions.
• After graduating in 1986, he moved to the United Kingdom for further education.
• In the U.K., Acemoglu earned his Bachelor’s degree in Mathematical Economics from the University of York in 1989.
• He continued his studies at the London School of Economics (LSE), where he received both his Master’s degree in 1990 and his PhD in 1992.

His doctoral thesis, Essays in Microfoundations of Macroeconomics: Contracts and Economic Performance, received remarkable praise from his examiners.

• James Malcomson, who is now an emeritus professor of economics at the University of Oxford, noted that even the weakest chapters of his thesis were more than sufficient to earn him a PhD.
• Acemoglu’s rapid academic progress led economist Arnold Kling to describe him as a “wunderkind,” earning his doctorate at the age of just 25.

Building an academic career at MIT, influencing modern economics

In 1993, Acemoglu joined the Massachusetts Institute of Technology (MIT), where he quickly rose through the ranks.

He became a full professor in 2000, and in 2019, he was honored with the title of “Institute Professor,” the highest distinction MIT awards to its faculty. Throughout his career, Acemoglu’s research has spanned multiple fields, including political economy, economic growth, income inequality and labor economics.

Acemoglu’s contributions to understanding how political and economic institutions influence the prosperity of nations have earned him recognition as one of the most influential economists of his time.

He has been particularly interested in how institutional frameworks – whether inclusive or extractive – can drive economic outcomes, especially in developing nations.

American Turkish economist Acemoglu’s key publications, ideas

Acemoglu is well-known for his collaboration with political scientist James A. Robinson.

They co-authored Economic Origins of Dictatorship and Democracy (2006), a book that analyzes how political institutions shape whether a country moves towards democracy or authoritarianism.

Their next collaboration, Why Nations Fail: The Origins of Power, Prosperity, and Poverty (2012), brought their work into the global spotlight.

• This book argues that it is not geography or culture that determines a nation’s economic success, but rather the quality of its institutions.
• Countries with inclusive institutions – where citizens have a say in governance and the rule of law is respected – tend to thrive.
• In contrast, those with extractive institutions, which serve a small elite at the expense of the broader population, struggle economically.
• Their research not only shifted how economists think about development but also provided new insights for policymakers trying to reform struggling economies.

Why Nations Fail has been translated into several languages and remains influential in both academic and policy circles.

Real-world impact of Daron Acemoglu’s research on global policy

Acemoglu’s research has not only reshaped academic discussions, but has also had direct implications for global policy. His work on democracy and economic growth, labor markets, and institutional reforms has been widely cited by governments and international organizations, influencing a variety of policy decisions:

• Democracy and economic growth: Acemoglu’s study, Democracy Does Cause Growth, provides clear evidence that countries transitioning to democracy experience long-term economic benefits, with an average gross domestic product (GDP) increase of 20% over 25 years. This finding has been referenced by international organizations, such as the World Bank and the IMF when advising on political and economic reforms in developing countries.
• Labor markets and automation: His research on the impact of technological change and automation on employment and wages has been integral to discussions around future job markets, especially in the U.S. His findings support policies focused on improving education and job retraining programs to address automation’s effects.
• Institutional reforms: Daron Acemoglu’s work, particularly in Why Nations Fail, has influenced institutional reform discussions in developing nations. His theories on inclusive versus extractive institutions have been applied by organizations like the United Nations in advising countries transitioning from authoritarian regimes​.

Nobel laureate economist Acemoglu’s awards, recognition

Acemoglu’s pioneering work has been recognized with numerous awards throughout his career. In 2005, he received the John Bates Clark Medal, which is given to an economist under the age of 40 for outstanding contributions to the field. This award is often considered a precursor to the Nobel Prize.

In 2024, Acemoglu, along with Simon Johnson and James A. Robinson, was awarded the Nobel Prize in economics for their research on how institutions are formed and how they affect prosperity.

The Nobel Committee praised their work for explaining why nations with inclusive institutions prosper, while those with extractive institutions remain trapped in cycles of poverty and low economic growth.

Their research on how colonialism shaped the institutional structures of many countries also provided valuable insights into why some nations are more successful than others.

Daron Acemoglu’s personal life, lasting influence

Acemoglu is married to Asuman Ozdaglar, a professor of electrical engineering at MIT, and they have two sons, Arda and Aras.

His influence extends far beyond academia; his research has shaped policy discussions worldwide on the importance of institutions in economic development.

Policymakers, international organizations, and economists frequently reference his work when tackling challenges related to inequality, development and institutional reform.