Returns on Health Investments through Sports Activity in Russia

Regular physical activity is one of the most effective health investments. It is considered that better health indicators associated with sports activity have a positive effect on life-long earnings and overall economic growth. The research below aims to determine the effect of different factors, such as income level, education, and other characteristics on individual sports activity levels. The study investigates returns on health investments. In other words, how sports activity affects overall income levels. Another goal of the paper is to estimate the impact of sports infrastructure transformations on physical activity levels across different groups of individuals. A wide range of statistical methods and models are being applied in the current research, including log-linear OLS regressions to determine physical activity determinants, Fixed effects model to estimate returns on health investments and Difference-in-Differences methodology to estimate the effect of sports infrastructure transformations and to compare physical activity behaviors of certain groups of individuals. The empirical analysis will be based on RLMS individual’s panel data, 2005-2018. Empirical analysis shows the high impact of earnings level, education, and regional factors on individual physical activity. Besides, positive connections were found between the increase in income levels and regular physical activity. It is clear that sports infrastructure transformations could significantly increase the physical activity levels of certain groups of individuals. The results of the study show that sports infrastructure policies that take into account the characteristics of population groups, as well as regional disproportion, can be an effective mechanism in boosting physical activity participation and improving overall wellbeing.