I had the opportunity to write my doctoral thesis as a research associate in the public economics department of DIW Berlin and as a graduate student of the DIW Berlin Graduate Center. I am grateful for the inspiring and professional environment at DIW Berlin and for the precious support which made this project possible, given by my supervisor and my colleagues. First of all, I would like to express my deepest gratitude to my supervisor, Viktor Steiner, who continuously supported and guided me. He aroused my interest in microeconometrics and encouraged me to write a doctoral thesis, which has been the most important experience in my professional life. I appreciate his exceptional ability to deliberate on empirical phenomena and trace them ba...