To what extent is social policy necessary to cushion the negative consequences of structural change and compensate the losers of such change? How must this social policy be structured in order to not only (i) make an effective contribution to reducing the different dimensions of poverty and inequality, but also (ii) increase the willingness of citizens to invest (and thereby boost economic growth among poorer social groups) and(iii) promote social cohesion and stability within society and the state?
In order to answer these questions, the research group is analysing social insurance and transfer systems as well as traditional and informal forms of social protection and mechanisms for supporting smallholders. In particular, we are examining the trade-offs and synergies that could arise between approaches to economic and social policy, and between different instruments of social policy. What might a consistent overall system of social policy look like in different contexts? And how can we adequately measure multidimensional poverty and inequality? This is of interest not least when it comes to suitably mapping trade-offs between effects of different policies on different dimensions of poverty and inequality.