Whistle‐blowing and the incentive to hire.

We consider a previously neglected cost of whistle‐blower awards: employers may base their hiring decisions, on the margin, not on the productivity of an employee but rather on the probability that the employee will become a whistle‐blower. We develop a three‐stage model to examine how productivity...

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Publicado en:Economic Inquiry Vol. 62; no. 3; pp. 1292 - 1309
Autores principales: De Mot, Jef, Mungan, Murat C.
Formato: Artículo
Publicado: Wiley-Blackwell Jul2024
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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          De Mot, Jef
          Mungan, Murat C.
        affil:
          Faculty of Business Economics at the University of Hasselt, Hasselt, Belgium
          Texas A&M University School of Law, Fort Worth Texas,, USA
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        Whistleblowing
        Whistleblowers
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        crime
        deterrence
        hiring incentives
        whistle‐blowing
        crime
        deterrence
        hiring incentives
        whistle‐blowing
      ab: We consider a previously neglected cost of whistle‐blower awards: employers may base their hiring decisions, on the margin, not on the productivity of an employee but rather on the probability that the employee will become a whistle‐blower. We develop a three‐stage model to examine how productivity losses due to distortions at the hiring stage influence optimal whistle‐blower rewards. We characterize optimal rewards for whistle‐blowing, and show that when rewards can be chosen according to either the benefits of the employer from offending or the productivity of the worker being hired, productivity‐based rewards are superior to benefit‐based rewards.
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    language: English
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