Questions of income and wealth distribution and the economic impact of redistribution through tax and transfer systems are controversially discussed in public. The Research Department “Social Policy and Redistribution” contributes to objectifying this discussion with empirically founded analyses in both a national and international context. A major research focus is on redistribution through tax and transfer systems and associated economic effects. The Research Department’s empirical studies aim to provide a reliable basis for tax and social policy recommendations. The research focus thereby lies on microdata analyses to describe the distribution and efficiency effects of the tax and transfer system, as well as on the identification of causal effects resulting from reforms using a variety of econometric techniques.