Does sports activity improve health? : Representative evidence using proximity to sports facilities as an instrument

Using representative and geocoded data from the Swiss Household Panel (SHP) and the Swiss Business Census, we estimate the effect of sports activity on health. OLS models show that sports activity significantly decreases overweight, sleeping problems, headaches, back problems, and perceived health impediments in everyday activities and significantly increases health satisfaction. Because sports activity is likely to be misreported and correlated with unobserved determinants of health, we use the number of sports facilities within 6 miles of the individual's residence as an instrument for sports activity. Although the instrument is powerful in explaining sports activity, the second-stage effects on health are mostly statistically insignificant due to the high standard errors of the IV estimates