Why "family men" make terrible bosses

Martha Gill's "Irrational Animals" column.

If you’re trying to become the leader of a political party or a chief executive, it might be a good idea to have some kids – especially if you’re a man. For some reason, we like having family men at the top: perhaps because we think they’re more relatable; perhaps because we think they’re kinder or more empathetic.

Political leaders, in particular, often introduce policy measures that affect children with a brief mention of their own kids (just to show parents that they’re on the same page) – or simply mention them apropos of nothing.

“My children have onesies and I often say I’m very jealous,” Cameron announced last week, just to make sure, one last time, that we all know he’s a dad.

The implication is that because a leader has children, he’ll care more about children in general. Anecdotally, at least, this seems not to be true. Before having children, people tend to have a benign (if not particularly invested) attitude towards other people’s kids. Have children of your own and these other kids become tiny competitors: less good at gym than your child but somehow in the gym team; inexplicably cast as Mary in the nativity play; undeservedly in a higher maths class; irritatingly better at the clarinet.

Although your image becomes fuzzier and warmer, your behaviour seems to go in the opposite direction. I have seen the genuinely empathetic suddenly start filling up their friends’ Facebook newsfeeds with 12 daily pictures of their newborns (all, surely, the same picture). I have seen the genuinely interesting and funny suddenly unable to talk about anything but nappy rash.

The problem is that having children completely shifts your priorities. It makes you more grasping (on their behalf) – which makes the warm and fuzzy image rather odd.

A recent study by the Aalborg University economics professor Michael Dahl showed that the first thing male CEOs do when they have their first child is to give themselves a raise at the expense of everyone else in the company. The research was carried out on a large group of Danish chief executives and found that when they had a child, their pay went up by an average of 4.9 per cent. The rest of the company were paid about 0.2 per cent less.

If it’s a boy and a firstborn, male employees suffer particularly –wages going down by about 0.5 per cent. Interestingly, though, the effect is muted when the baby is a girl. Fathers of girls take a smaller pay rise (3 per cent) and give their female employees a tiny average raise.

According to the researchers, the odd gender differences here are probably a mixture of straightforward competitiveness (with the men) and a raised awareness of the pay gap (which, though small, still exists in Denmark) that could now affect their daughters. They speculated that the results would be more exaggerated in the US but privacy laws made it too hard to get the right information.

It’s an interesting study as it broaches the idea that caring about your children doesn’t necessarily translate into caring about anyone else. It might be time to give the childless a chance at promotion.

Do we like David Cameron more because he has children? Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

This article first appeared in the 28 January 2013 issue of the New Statesman, After Chavez

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR