Raji Jayaraman, associate professor of economics, Jan Nimczik, assistant professor of economics and David Ronayne, assistant professor of economics at ESMT Berlin, are working on three respective subprojects within the CRC TRR 190: 

Family policy, gender, and redistribution: Impacts, social preferences, and design 

This subproject, with participation of Raji Jayaraman, investigates three aspects of socio-economic inequality. First, it examines the evolution of economic inequality; the public’s perception of it; and the role of social norms and culture in shaping inequality. Second, it studies the effects of family policies and the tax-transfer system on individual behavior and inequality. Third, it investigates the design of policy reforms that can improve social welfare and economic efficiency. 

Assortative matching and the allocation of talent

With participation of Jan Nimczik, this subproject aims to gain a nuanced understanding of talent allocation in labor markets. The pairing of workers with firms—and even with specific roles within an organization—tends to follow a pattern known as positive assortative matching. In simple terms, high-earning workers often land jobs at companies that offer the highest wages. This phenomenon plays a significant role in shaping wage inequality. The project examines how this matching process emerges and the ways in which institutions influence it. 

Biases and decision impairments in markets 

This subproject, involving David Ronayne, investigates systematic effects on market outcomes caused by limited information and biases. By understanding the transmission mechanisms of biased behavior into market outcomes, the project aims to provide informed and targeted recommendations for regulation and policy with a focus on topics relevant to modern marketplaces, including human-AI interaction, consumer search behavior, targeted advertising, and privacy protocols. 

The overarching goal of all projects is to analyze the economic implications of various aspects of rationality and irrationality in competitive environments and develop robust recommendations to policymakers.