Subsidizing Extra Jobs

directed the Chair of Public Economics, for giving me the opportunity to pursue my research interests and for his encouragement and support throughout the project. Without his academic guidance, his soft, but determined pressure for results and his enthusiasm to prove that economic theory can make a difference to economic policymaking, this dissertation would never have been completed. Wehke – for their inspiring company, many fruitful discussions and their friendship. I am also thankful to Sabine Wolf, the Chair's secretary, for her support and the many non-academic, but all the more refreshing conversations. Chapters 1, 2, and 5 were written in parts in collaboration with Ronnie Schöb and Joachim Weimann. I am grateful to both for giving me the opportunity to work with them on their pet project – the Magdeburg Alternative. It was the most instructive and illuminating experience to assist in the creation of this policy proposal and to help fighting for its political recognition. Alas, the project has not yet found the political support it needs. My hope would be that this dissertation helps to make the idea of marginal employment subsidization more popular at least among economists, and perhaps also among politicians, and thereby gives back some of the support to Ronnie Schöb and Joachim Weimann that they have given to me. Last, but definitely not least, I want to thank my wonderful wife Manuela for the joy and sunshine she brings into my life. Her understanding of the needs and demands of academic work was of invaluable help for me. Her never-ending patience and love gave me the strength to complete this dissertation.