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Institute for Economies in Transition, Bank of Finland BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland

No 9/2013:
Effectiveness of whistleblower laws in combating corruption

Rajeev K. Goel () and Michael A. Nelson ()

Abstract: Whistleblower laws are becoming important governance tools in both the public and private sectors. To examine the effectiveness of whistleblower laws and their awareness, this study creates a unique internet-based measure of awareness about whistleblower laws and provisions, focusing on the United States. Placing the analysis within the larger corruption literature, our results show that greater whistleblower awareness results in more observed corruption and this holds across specifications. Internet awareness of whistleblower laws appears to be more effective at exposing corruption than the quantity and quality of whistleblower laws themselves.

Keywords: corruption; whistleblowers; law enforcement; internet; United States; (follow links to similar papers)

JEL-Codes: H70; K42; (follow links to similar papers)

22 pages, May 13, 2013

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