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Protected but Punished? Wage Effects of Whistleblower Protection

Author

Listed:
  • Cho, Jae
  • Rhee, Jinju
  • Kretschmer, Tobias

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, 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).

Suggested Citation

  • Cho, Jae & Rhee, Jinju & Kretschmer, Tobias, 2025. "Protected but Punished? Wage Effects of Whistleblower Protection," CEPR Discussion Papers 20546, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:20546
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    File URL: https://cepr.org/publications/DP20546
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    More about this item

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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