"From the viral " Coldplay couple" to Elon Musk's children with a Neuralink executive, we're fascinated by office romances - especially when the boss is involved. They inspire gossip, spark debates about power and consent, and occasionally end in scandal. But beyond the headlines lies a serious question: What happens, economically and professionally, when a manager and a subordinate become involved?"
"To find out, my colleagues David Macdonald, Jerry Montonen, and I analyzed administrative data covering the entire population of Finland over 30 years. Our research revealed that starting a serious relationship with a manager at your workplace can have benefits - while it lasts. But when it ends, the costs are steep for the less powerful person in the relationship. These relationships also have a negative impact on the broader workplace environment, increasing turnover among the couple's coworkers."
Administrative data covering the entire population of Finland from 1988 to 2018 track career paths of every cohabiting couple who worked in the same organization where one partner held a managerial position. Subordinates in relationships with their manager experience an average earnings increase of about 6% during the relationship, with gains accruing gradually over the first two years. The majority of cases involve female subordinates and male managers, while men who date female managers exhibit even larger earnings increases. Breakups impose steep costs on the less powerful partner, and such relationships elevate turnover among coworkers.
Read at Fortune
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