Working Paper: CEPR ID: DP12613
Authors: Claudia Custodio; Stephan Siegel
Abstract: We investigate the link between birth order and the career outcome of becoming Chief Executive Officer (CEO) of a company. We find that CEOs are more likely to be the first-born, i.e., oldest, child of their family. This result holds for family firms, where traditionally the oldest child is appointed to run the family business, but also for non-family firms. We also find that CEOs are significantly less likely to have older brothers (relative to younger brothers) than older sisters (relative to younger sisters). The advantage of being first-born seems to decay over time, consistent with changing family structures and rearing practices as well as changing social norms.
Keywords: CEO; first born; birth order; family firm; rearing environment; upbringing
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Birth Order (J13) | Likelihood of Becoming a CEO (M12) |
| Firstborn Advantage (J13) | Likelihood of Becoming a CEO (M12) |
| Absence of Older Brothers (J12) | Likelihood of Becoming a CEO (M12) |
| Time of Appointment (C41) | Firstborn Advantage (J13) |
| Gender Dynamics (J16) | Firstborn Advantage (J13) |