Women's earnings increase when their managers have daughters

 

Women's relative earnings increase by 4.4% when  their manager becomes  the father of a daughter rather than a son.


Women's relative earnings increase by 4.4% when their manager becomes the father of a daughter rather than a son, according to a study performed by Maddalena Ronchi and Nina Smith. 

The researchers used Danish registry data covering Danish firms and individuals between 1992 and 2017. They then linked individual career histories with their family structure history over time. For each manager, they identified the establishment in which he worked each year, the characteristics of the employees he supervised, and the number, gender, and age of his children. They were then able to relate changes in gender outcomes within the firm, to the gender of a manager's newborn. 

The study shows "evidence of a daughter effect, as female employees working in establishments
where male managers parent an additional daughter, as opposed to a son, experience an
improvement in labor outcomes."
They found that  following the birth of the manager’s first daughter, the women's earnings increased by 4.4%, and their employment increased by 2.9%.

Similar effects were not detected if a manager had already had a daughter and experienced the birth of a son. 

Women's relative earnings increase by 4.4% when their manager becomes the father of a daughter



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