Local Newspaper Layoffs and Workplace Safety*

We investigate the role of the local media in curtailing undesirable behaviors of local corporations. We examine the effects of local newspaper layoffs on the workplace safety levels of local firms, finding that firms' total case rates of workplace injuries increase following newspaper layoffs. We also show the mechanisms of reductions in safety-related expenditures and increased workloads. Cross-sectional tests find that the monitoring role of these newspapers is more important for firms with weaker labor unions or lower institutional ownership. Overall, our results suggest that local newspapers serve as key corporate monitors and essential information intermediaries, mitigating firms' undesirable behavior.