Does State Aid Create Jobs? The Short and Mid-Term Employment Effects of Subsidies

This article looks at the aggregate effect of subsidies to Belgian firms on their levels of employment. It appears that firms receiving high subsidies experience a significantly higher increase in employment (FTE) than firms not receiving subsidies. This effect becomes visible about two years after the subsidies have been granted. This result sheds a more positive light on the employment effects of State aid than most of the previous studies focusing solely on aid mea