Researchers in the competence area Public Finance, Social Security, Distribution study the fiscal effects of political measures.
Public Finance, Social Security, Distribution
If we are to solve the challenges facing our society, such as public debt crisis and demographic change, first of all we need a sound theoretical and empirical analysis of public budgets and social insurance systems. Responding to this need, the researchers of the unit ‘Public Finance, Social Security Systems, Income and Wealth Distribution’ examine the fiscal consequences of specific government policies, analyse the incentive and distribution effects for companies and private households and evaluate governmental redistribution policies.
Our aim is to develop ideas for effective long-term financial policies and reliable and efficient social insurance coverage for the major risks in life, i.e. old age, illness and long- term care. In the European context this requires a profound analysis of the Member States’ regulatory framework in order to understand interdependencies between varying national subsystems.
Sections of the Research Unit
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Studies and contributions

A Focus on the Middle Class - Demarcation, Development and Mobility
In 2018, roughly every second German was a member of the middle class as measured by income, a proportion which has barely changed for more than a decade. However, the lower income threshold of this middle-income group has risen - an indication of increased prosperity.
IW

Pension Concerns in Germany: Determinants and Normative Implications
The level of statutory pensions for future generations is set to decline systematically. If future retirees are to maintain their standard of living, they will therefore need to supplement their statutory benefits with private and occupational pensions – a change already initiated with the pension reforms of the early 2000s.
IW

Where the German Pharmaceutical Industry Sources its Intermediate Inputs: An International Comparison
The Corona pandemic has led to increasing demands for the reshoring of pharmaceutical production back to Germany. A strategic dependence on non-European active ingredient and drug manufacturers is cited as an argument.
IW

IW Economic Forecast Winter 2021: Disrupted Production, Price Rises and Pandemic Policies
In the course of 2021 Germany’s economic recovery has once again perceptibly lost momentum. After the strain brought about at the beginning of the year by the lockdown for the second and third waves of the Covid19 pandemic, manufacturing and construction companies are now struggling with a shortage of materials, while higher prices for fossil fuels are imposing an additional burden.
IW

More medicines "made in Germany" via international networking
The Corona pandemic has put the German pharmaceutical industry more than ever in the focus of political and social discussions. At an unprecedented speed, pharmaceutical companies have developed and brought to market four vaccines approved in Europe – German companies have played a major role in this success.
IW