Leadership & Growth

Male managers hire and pay women more after their first daughter, Danish study finds

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Representative image: Tumisu / Pixabay

A study in The Review of Economic Studies finds women's relative pay rose 4.4% and jobs 2.9% at firms after a male manager's first child was a daughter.

What Happened

Male managers start hiring and paying women more after their first child turns out to be a daughter, according to a study by economists Maddalena Ronchi of Northwestern University's Kellogg School of Management and Nina Smith of Aarhus University, published in The Review of Economic Studies and reported widely in early October 2026. Using Danish government records on workers and firms from 1992 to 2017, the researchers compared managers whose first child was a girl with those whose first child was a boy. After a daughter's birth, women's relative earnings at the manager's firm rose by 4.4% and their relative employment by 2.9%, with no measurable effect on how the firm performed.

Key Facts

  • Study: "Daddy's Girl: Daughters, Managerial Decisions, and Gender Inequality" by Maddalena Ronchi and Nina Smith.
  • Journal: The Review of Economic Studies.
  • Data: Danish administrative records on workers and companies, 1992 to 2017.
  • Method: compared male managers whose first child was a daughter with those whose first child was a son, which works like a natural experiment because a child's sex is down to chance.
  • Result: women's relative earnings rose 4.4% and relative employment 2.9% after the daughter's birth.
  • How it happened: managers replaced some male workers with women of similar education, working hours and pay.
  • Firm performance showed no significant change; reports say the shift was strongest for highly educated, full-time, well-paid women.

Why It Matters

Many explanations of the gender gap at work focus on women's choices or on formal rules. This study points to something else: the personal views of the people who make hiring and pay decisions. When a manager's own life changes, by raising a daughter, his decisions about whom to hire and how much to pay shift towards women. That suggests that ordinary bias, often unconscious, plays a measurable role in who gets hired and promoted.

The finding that firm performance did not change is just as important. Replacing men with equally qualified women did not hurt the business. In other words, the earlier, more male-heavy hiring was not driven by productivity. That undercuts a common argument that gender gaps at work simply reflect differences in ability or commitment.

For women building careers, and for organisations trying to close gaps, the study offers a lesson about leadership. If a manager's personal experience can move outcomes this much, then exposure, training and diverse hiring panels may help too. It also shows why who sits in management matters: decisions concentrated in a few hands can tilt the field for many.

For India, where women's participation in paid work remains low and few women reach senior roles, the study is a reminder that the attitudes of managers, most of whom are men, shape opportunities. The authors' data come from Denmark, a country with strong gender-equality policies, so the size of the effect may differ elsewhere, but the mechanism is likely to be familiar.

MeasureChange after a manager's first daughter
Women's relative earningsUp 4.4%
Women's relative employmentUp 2.9%
Firm performanceNo significant change

Impact

Short-term: The study gives companies and HR teams evidence that hiring and pay decisions can carry personal bias, and that correcting it need not cost performance.

Long-term: Findings like this can shape policies on structured hiring, pay audits and diverse decision-making panels, aimed at reducing reliance on individual managers' views.

Who is affected: Women job-seekers and employees, managers and HR leaders, policymakers working on gender equality at work, and researchers studying discrimination.

Key Takeaway

Male managers hired and paid women more after the birth of a first daughter, a Danish study finds, with no loss in firm performance.

Questions and Answers

What did the "daughter effect" study find?

Using Danish data from 1992 to 2017, it found that after a male manager's first child was a daughter, women's relative earnings at his firm rose 4.4% and their relative employment 2.9%.

Did hiring more women hurt the companies?

No. The researchers found no significant effect on firm performance, suggesting the earlier imbalance was not about productivity.

Who conducted the study?

Economists Maddalena Ronchi of Northwestern University's Kellogg School of Management and Nina Smith of Aarhus University, in a paper published in The Review of Economic Studies.

Does the finding apply to India?

The data are from Denmark, so the exact numbers may differ. But it shows that managers' personal attitudes can shape hiring and pay, a mechanism likely to matter in Indian workplaces too.

Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.

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Sourced and fact-checked by the Peepals Global Editorial Team

Reported, fact-checked and published by the Peepals Global Editorial Team.

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