IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp4684.html
   My bibliography  Save this paper

Work Out or Out of Work: The Labor Market Return to Physical Fitness and Leisure Sport Activities

Author

Listed:
  • Rooth, Dan-Olof

    (Stockholm University)

Abstract

This study is the first to present evidence of the return to leisure sports in the job hiring process by sending fictitious applications to real job openings in the Swedish labor market. In the field experiment job applicants were randomly given different information about their type and level of leisure sport being engaged in. Applications which signal sport skills have a significantly higher callback rate of about two percentage points for men, and this effect is about twice as large in physically demanding occupations. This indicates a health-productivity interpretation of the results. However, the result is mainly driven by the return to sports as soccer and golf, and not at all by more fitness related sports as running and swimming, which is indicative of alternative explanations for the labor market sports premium. One possible explanation emerges when analyzing register data on adult earnings and physical fitness when enlisting at age 18. The fitness premium, net of unobservable family variables, is in the order of 4-5 percent, but diminishes to 1 percent when controlling for non-cognitive skills. Hence, these results indicate that being engaged in leisure sports signals having important social skills.

Suggested Citation

  • Rooth, Dan-Olof, 2010. "Work Out or Out of Work: The Labor Market Return to Physical Fitness and Leisure Sport Activities," IZA Discussion Papers 4684, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4684
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp4684.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. L Feinstein, 2000. "The Relative Economic Importance of Academic, Psychological and Behavioural Attributes Developed on Chilhood," CEP Discussion Papers dp0443, Centre for Economic Performance, LSE.
    2. P. A. Riach & J. Rich, 2002. "Field Experiments of Discrimination in the Market Place," Economic Journal, Royal Economic Society, vol. 112(483), pages 480-518, November.
    3. Markus M. Mobius & Tanya S. Rosenblat, 2006. "Why Beauty Matters," American Economic Review, American Economic Association, vol. 96(1), pages 222-235, March.
    4. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    5. Carlsson, Magnus & Rooth, Dan-Olof, 2007. "Evidence of ethnic discrimination in the Swedish labor market using experimental data," Labour Economics, Elsevier, vol. 14(4), pages 716-729, August.
    6. Simon Rottenberg, 1956. "The Baseball Players' Labor Market," Journal of Political Economy, University of Chicago Press, vol. 64(3), pages 242-242.
    7. John Cawley & Chad Meyerhoefer & David Newhouse, 2007. "The impact of state physical education requirements on youth physical activity and overweight," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1287-1301, December.
    8. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
    9. Carlsson, Magnus & Rooth, Dan-Olof, 2008. "Is It Your Foreign Name or Foreign Qualifications? An Experimental Study of Ethnic Discrimination in Hiring," IZA Discussion Papers 3810, Institute of Labor Economics (IZA).
    10. Bradley T. Ewing, 2007. "The Labor Market Effects of High School Athletic Participation," Journal of Sports Economics, , vol. 8(3), pages 255-265, June.
    11. Carlsson, Magnus & Rooth, Dan-Olof, 2008. "An Experimental Study of Sex Segregation in the Swedish Labour Market: Is Discrimination the Explanation?," IZA Discussion Papers 3811, Institute of Labor Economics (IZA).
    12. Eisenberg Daniel & Okeke Edward, 2009. "Too Cold for a Jog? Weather, Exercise, and Socioeconomic Status," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-32, June.
    13. Jo Blanden & Paul Gregg & Lindsey Macmillan, 2007. "Accounting for Intergenerational Income Persistence: Noncognitive Skills, Ability and Education," Economic Journal, Royal Economic Society, vol. 117(519), pages 43-60, March.
    14. Nicola Persico & Andrew Postlewaite & Dan Silverman, 2004. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 1019-1053, October.
    15. Anne Case & Christina Paxson, 2008. "Stature and Status: Height, Ability, and Labor Market Outcomes," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 499-532, June.
    16. Lisa Farrell & Michael A. Shields, 2002. "Investigating the economic and demographic determinants of sporting participation in England," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(2), pages 335-348, June.
    17. Melissa Osborne & Herbert Gintis & Samuel Bowles, 2001. "The Determinants of Earnings: A Behavioral Approach," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1137-1176, December.
    18. Lechner, Michael, 2009. "Long-run labour market and health effects of individual sports activities," Journal of Health Economics, Elsevier, vol. 28(4), pages 839-854, July.
    19. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
    20. Rooth, Dan-Olof, 2011. "Work out or out of work -- The labor market return to physical fitness and leisure sports activities," Labour Economics, Elsevier, vol. 18(3), pages 399-409, June.
    21. Sloane, Peter J., 2006. "Rottenberg and the Economics of Sport after 50 Years: An Evaluation," IZA Discussion Papers 2175, Institute of Labor Economics (IZA).
    22. Nicola Persico & Andrew Postlewaite & Dan Silverman, 2001. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height, Third Version," PIER Working Paper Archive 04-013, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 15 Mar 2004.
    23. Currie, Janet & Madrian, Brigitte C., 1999. "Health, health insurance and the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 50, pages 3309-3416, Elsevier.
    24. Susan Averett & Sanders Korenman, 1996. "The Economic Reality of the Beauty Myth," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 304-330.
    25. Harper, Barry, 2000. "Beauty, Stature and the Labour Market: A British Cohort Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 771-800, Special I.
    26. Dan-Olof Rooth, 2009. "Obesity, Attractiveness, and Differential Treatment in Hiring: A Field Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    27. John M. Barron & Bradley T. Ewing & Glen R. Waddell, 2000. "The Effects Of High School Athletic Participation On Education And Labor Market Outcomes," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 409-421, August.
    28. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    29. Brad R. Humphreys & Jane E. Ruseski, 2007. "Participation In Physical Activity And Government Spending On Parks And Recreation," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 538-552, October.
    30. Erik Lindqvist & Roine Vestman, 2011. "The Labor Market Returns to Cognitive and Noncognitive Ability: Evidence from the Swedish Enlistment," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 101-128, January.
    31. Lundborg, Petter & Nystedt, Paul & Rooth, Dan-Olof, 2009. "The Height Premium in Earnings: The Role of Physical Capacity and Cognitive and Non-Cognitive Skills," IZA Discussion Papers 4266, Institute of Labor Economics (IZA).
    32. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
    33. Hamermesh, Daniel S & Biddle, Jeff E, 1994. "Beauty and the Labor Market," American Economic Review, American Economic Association, vol. 84(5), pages 1174-1194, December.
    34. John Cawley, 2004. "The Impact of Obesity on Wages," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    35. Ruhm Christopher J, 2007. "Current and Future Prevalence of Obesity and Severe Obesity in the United States," Forum for Health Economics & Policy, De Gruyter, vol. 10(2), pages 1-28, September.
    36. Steckel, Richard H., 2009. "Heights and human welfare: Recent developments and new directions," Explorations in Economic History, Elsevier, vol. 46(1), pages 1-23, January.
    37. Inas Rashad, 2007. "Cycling: An Increasingly Untouched Source of Physical and Mental Health," NBER Working Papers 12929, National Bureau of Economic Research, Inc.
    38. Ewing, Bradley T., 1998. "Athletes and work," Economics Letters, Elsevier, vol. 59(1), pages 113-117, April.
    39. Feinstein, Leon, 2000. "The relative economic importance of academic, psychological and behavioural attributes developed on childhood," LSE Research Online Documents on Economics 20206, London School of Economics and Political Science, LSE Library.
    40. Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
    41. Lundborg, Petter & Nystedt, Paul & Rooth, Dan-Olof, 2010. "No Country for Fat Men? Obesity, Earnings, Skills, and Health among 450,000 Swedish Men," IZA Discussion Papers 4775, Institute of Labor Economics (IZA).
    42. Yona Rubinstein & James J. Heckman, 2001. "The Importance of Noncognitive Skills: Lessons from the GED Testing Program," American Economic Review, American Economic Association, vol. 91(2), pages 145-149, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lundborg, Petter & Nystedt, Paul & Rooth, Dan-Olof, 2010. "No Country for Fat Men? Obesity, Earnings, Skills, and Health among 450,000 Swedish Men," IZA Discussion Papers 4775, Institute of Labor Economics (IZA).
    2. Hyytinen, Ari & Lahtonen, Jukka, 2013. "The effect of physical activity on long-term income," Social Science & Medicine, Elsevier, vol. 96(C), pages 129-137.
    3. Cabane Charlotte & Lechner Michael, 2015. "Physical Activity of Adults: A Survey of Correlates, Determinants, and Effects," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(4-5), pages 376-402, August.
    4. Lundborg, Petter & Nystedt, Paul & Rooth, Dan-Olof, 2009. "The Height Premium in Earnings: The Role of Physical Capacity and Cognitive and Non-Cognitive Skills," IZA Discussion Papers 4266, Institute of Labor Economics (IZA).
    5. Peter D. Lunn & Elish Kelly, 2015. "Participation in School Sport and Post-School Pathways: Evidence from Ireland," National Institute Economic Review, National Institute of Economic and Social Research, vol. 232(1), pages 51-66, May.
    6. Vasilios Kosteas, 2012. "The Effect of Exercise on Earnings: Evidence from the NLSY," Journal of Labor Research, Springer, vol. 33(2), pages 225-250, June.
    7. Petter Lundborg & Paul Nystedt & Dan-Olof Rooth, 2014. "Body Size, Skills, and Income: Evidence From 150,000 Teenage Siblings," Demography, Springer;Population Association of America (PAA), vol. 51(5), pages 1573-1596, October.
    8. Kavetsos, Georgios, 2011. "The impact of physical activity on employment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 775-779.
    9. Lee, Wang-Sheng, 2014. "Big and Tall: Is there a Height Premium or Obesity Penalty in the Labor Market?," IZA Discussion Papers 8606, Institute of Labor Economics (IZA).
    10. LIU Xing & SIERMINSKA Eva, 2014. "Evaluating the effect of beauty on labor market outcomes: A review of the literature," LISER Working Paper Series 2014-11, Luxembourg Institute of Socio-Economic Research (LISER).
    11. Dohmen, Thomas, 2014. "Behavioral labor economics: Advances and future directions," Labour Economics, Elsevier, vol. 30(C), pages 71-85.
    12. Han, Euna & Norton, Edward C. & Powell, Lisa M., 2011. "Direct and indirect effects of body weight on adult wages," Economics & Human Biology, Elsevier, vol. 9(4), pages 381-392.
    13. Michael Lechner & Paul Downward, 2017. "Heterogeneous sports participation and labour market outcomes in England," Applied Economics, Taylor & Francis Journals, vol. 49(4), pages 335-348, January.
    14. Böckerman, Petri & Johansson, Edvard & Kiiskinen, Urpo & Heliövaara, Markku, 2010. "The relationship between physical work and the height premium: Finnish evidence," Economics & Human Biology, Elsevier, vol. 8(3), pages 414-420, December.
    15. repec:zbw:rwirep:0381 is not listed on IDEAS
    16. Caliendo, Marco & Lee, Wang-Sheng, 2013. "Fat chance! Obesity and the transition from unemployment to employment," Economics & Human Biology, Elsevier, vol. 11(2), pages 121-133.
    17. Steven Ongena & Alexander Popov, 2016. "Gender Bias and Credit Access," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 48(8), pages 1691-1724, December.
    18. Arndt R. Reichert, 2015. "Obesity, Weight Loss, and Employment Prospects: Evidence from a Randomized Trial," Journal of Human Resources, University of Wisconsin Press, vol. 50(3), pages 759-810.
    19. Mavisakalyan, Astghik, 2018. "Do employers reward physical attractiveness in transition countries?," Economics & Human Biology, Elsevier, vol. 28(C), pages 38-52.
    20. Elif S. Filiz, 2022. "Does it Payoff to be Blond in a Non-Blond Neighborhood? Eye Color, Hair Color, Ethnic Composition and Starting Wages," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 48(1), pages 122-146, January.
    21. Ongena, S. & Popov, A., 2013. "Take Care Of Home And Family, Honey, And Let Me Take Care Of The Money. Gender Bias And Credit Market Barriers For Female Entrepreneurs," Other publications TiSEM 6e4843b2-e333-48f5-bf18-7, Tilburg University, School of Economics and Management.

    More about this item

    Keywords

    leisure sports; physical fitness; cardiovascular fitness; correspondence testing; earnings;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp4684. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.