Here's What Will Happen To Your Salary If Your Male CEO Just Had A Kid

father son habit

Photo: elektrorl/

Happy news for your company’s chief executive may not be such great news for your paycheck.Recent research, presented at the American Economic Association’s Friday meeting and written up in the Wall Street Journal finds that worker’s salaries go down by an average of 0.2 per cent, or $100, after a male CEO has a child.

It may not all be bad. The gender of the child and whether it’s their first one both make a big difference. 

Researchers Michael Dahl of Aalborg University, Cristian Dezso of the University of Maryland, and David Gaddis Ross, who looked at a broad data set of Danish companies, found that salaries actually go up when a CEO’s first child is born, if that child is a daughter. 

The best news is for female employees. After a first-born daughter, their wages go up 1.1 per cent, versus 0.6 per cent for male employees. Their salary goes down at a lower rate when CEOs have sons, and pay actually goes up by 0.8 per cent when that son is a CEOs first child.

The researchers theorized that becoming a father may change an executives view of women, and cited research that found that men care more about people’s well-being overall after having a daughter.   

NOW READ: Debunking Three Common Myths About CEO Pay

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