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    Rights statement: 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.

    Accepted author manuscript, 514 KB, PDF document

    Embargo ends: 6/04/23

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

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

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<mark>Journal publication date</mark>6/04/2021
<mark>Journal</mark>British Journal of Industrial Relations
Publication StatusE-pub ahead of print
Early online date6/04/21
<mark>Original language</mark>English

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.

Bibliographic note

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.