Tuesday 1 April

Protected but punished? Wage Effects of Whistleblower Protection

Tobias Kretschmer – Ludwig-Maximilians Universität München (LMU).

Authors:

Jae Cho, Department of Economics, LMU Munich
Jinju Rhee, Department of Economics, LMU Munich T
Tobias Kretschmer, ISTO, LMU Munich, Nova SBE Lisbon, CEPR London

Abstract:

We examine the impact of whistleblowing protection laws on wages, integrating both theoretical and empirical perspectives. We find that strengthened legal protection leads to significant shifts in wage levels, highlighting an unexpected consequence of these legal changes. Specifically, the study suggests that companies with a history of misconduct may lower wages for their employees in response to enhanced whistleblower protection. Our analysis indicates that this wage decline is largely driven by the use of secrecy terms, such as non-disclosure agreements (NDAs).

Registration, please contact robin@em-lyon.com

Room A2-116, Lyon campus