Labor market effects of sports and exercise: Evidence from Canadian panel data

• We analyse the effects of individual sports & exercise on labour market outcomes.
• We find substantial earnings effects.
• These effects occur only if the level of sports and exercise is high enough.

Based on the Canadian National Population Health Survey we estimate the effects of individual sports and exercise on individual labor market outcomes. The data covers the period from 1994 to 2008. It is longitudinal and rich in life-style, health, and physical activity information. Exploiting these features of the data allows for a credible identification of the effects as well as for estimating dose–response relationships. Generally, we find positive long-run income effects. However, an activity level above the current recommendation of the WHO for minimum physical activity is required to reap the long-run benefits.