More countries are adopting whistleblower protection laws, often with the aim of enhancing enforcement. While whistleblower protection is essential in democratic societies, it may not be sufficient to obtain this objective to a desirable degree. Further incentives, such as monetary rewards for whistleblowers, may be necessary to achieve a desirable level of detection and deterrence of wrongdoing (Schechter, 2017).
In this paper, we make this point by highlighting some issues with protections in enhancing enforcement relative to the perceived level of economic wrongdoing in Europe. We then consider evidence on whistleblower rewards from the US, discuss how such programs could be designed and implemented in Europe, and conclude.