Are Newspaper Deserts an Oasis for Leniency? The Effect of Information Dissemination on Regulator Activity

The effectiveness of regulator activity, such as inspections and audits, increases with the deterrence effects triggered by such activity. Deterrence can be increased through information dissemination (e.g., newspaper coverage) about regulator activity. I combine detailed inspection data from OSHA (Occupational Safety and Health Administration) with local newspaper closures to estimate the effect of a decrease in deterrence on regulator activity. I show that newspaper closures lead to a 6% decrease in the inspection rate, meaning regulators consider deterrence effects when making enforcement decisions. This effect is stronger when newspapers have stronger deterrence effects and the change in deterrence is more salient to the regulator. My results show that information dissemination can be an integral part of regulatory enforcement due to its inherent deterrence effects