Deng, Haotian; Desiere, Sam; Cockx, Bart; Bijnens, Gert - 2026
This paper studies how employment subsidies for start-ups shape their performance. We exploit an unexpected policy … reform in Belgium that permanently exempted start-ups hiring their first employee from payroll taxes for that employee. Using … employed fewer workers and generated lower output, value added, and profits compared to pre-reform start-ups. However, post …