The Research Group “Inequality and Public Policy” analyses the distributional effects of social policies. It is our goal to inject scientific answers based on sound empirical evidence into the controversial public debate on income and wealth distribution as well as the effect of redistributive policies. Thereby, our studies provide a solid basis for the decisions of policymakers. We use microdata to analyse the distributional and efficiency effects of tax, labour market, and regional policies and strive to identify causal policy effects using state-of-the-art microeconometric research designs.