Working Class CEOs: Formation of Occupational Norms and Corporate Labor Policies

52 Pages Posted: 31 Dec 2019

See all articles by Henrik Cronqvist

Henrik Cronqvist

University of Miami - Department of Finance

Irena Hutton

Florida State University - College of Business

Danling Jiang

College of Business, Stony Brook University

Date Written: Novmber 18, 2019

Abstract

We examine the relation between the CEO’s childhood socioeconomic class and corporate labor policies. We find that CEOs raised in low socioeconomic class families are less likely to invest in employee friendly firm policies measured by several types of labor and employment litigation, including litigation by unions, and occupational safety measures. These results are confirmed by crowdsourced employee firm reviews across several workplace dimensions. Our findings are supported by the studies of within-family transmission of occupational knowledge and formation of occupational norms as well as development of empathy and altruistic behaviors in children.

Keywords: CEOs, labor policies, workplace safety, employment and labor litigation

JEL Classification: G02, G3, J5, J8

Suggested Citation

Cronqvist, Henrik and Hutton, Irena and Jiang, Danling, Working Class CEOs: Formation of Occupational Norms and Corporate Labor Policies (Novmber 18, 2019). University of Miami Business School Research Paper No. 3501928, Available at SSRN: https://ssrn.com/abstract=3501928 or http://dx.doi.org/10.2139/ssrn.3501928

Henrik Cronqvist

University of Miami - Department of Finance ( email )

5250 University Drive
220 Jenkins Building
Coral Gables, FL 33146
United States
(305) 284-9482 (Phone)

HOME PAGE: http://sites.google.com/site/henrikcronqvist/

Irena Hutton (Contact Author)

Florida State University - College of Business ( email )

821 Academic Way
Tallahassee, FL 32306-1110
United States
850.645.1520 (Phone)

Danling Jiang

College of Business, Stony Brook University ( email )

306 Harriman Hall
Stony Brook, NY 11794
United States

HOME PAGE: http://sites.google.com/site/danlingjiang

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