Contracts, pay and performance in the sport of kings:Evidence from horse racing

Butler, D. and Butler, R. and Simmons, R. (2021) Contracts, pay and performance in the sport of kings:Evidence from horse racing. British Journal of Industrial Relations. ISSN 0007-1080

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Abstract

A considerable body of evidence shows that performance-related pay schemes can raise worker productivity with much of this increase due to worker sorting. However, variations in the power of performance-related pay contracts are rarely observed. The thoroughbred horse racing industry offers such an opportunity. Contrary to earlier research, we find no evidence of worker shirking when the power of incentive contracts is reduced through jockeys switching from complete performance-related pay schemes into a salaried (retainer) contract. Moreover, salary contracts result in legacy effects with superior performance continuing for elite jockeys even after their salary agreements have expired. We argue this is due to a reduction in monitoring costs. © 2021 John Wiley & Sons Ltd.

Item Type:
Journal Article
Journal or Publication Title:
British Journal of Industrial Relations
Additional Information:
This is the peer reviewed version of the following article: Butler, D, Butler, R, Simmons, R. Contracts, pay and performance in the sport of kings: Evidence from horse racing. British Journal of Industrial Relations. 2021; 1– 24. https://doi.org/10.1111/bjir.12600 which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1111/bjir.12600 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1400/1405
Subjects:
ID Code:
154705
Deposited By:
Deposited On:
10 May 2021 16:00
Refereed?:
Yes
Published?:
Published
Last Modified:
07 Dec 2021 13:17