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When Male CEOs Have Kids, Employees Make Less Money

When Male CEOs Have Kids, Employees Make Less Money
Photograph by Getty Images

If your boss is having his first child, you’d better hope it’s a girl.

That’s the takeaway from a new study published in Administrative Science Quarterly, which examines how employees’ wages change immediately after a male chief executive officer has a child. Economics and business professors from Denmark’s Aalborg University, Columbia Business School, and the University of Maryland’s Smith School of Business studied the salaries of 1.2 million people across 10,600 companies in Denmark and found that when a male CEO has a child, his employees’ wages decrease. It’s not a large decline—just 0.2 percent, adjusted for inflation—but when spread across an entire company, that small amount of money (about $100 per employee) adds up.