Don't Just Improve Your Health, Improve Your Bottom Line

Don't Just Improve Your Health, Improve Your Bottom Line

Written by Angela Guss
Posted June 27, 2012

It’s no secret that exercise can reduce stress, increase energy levels and improve one’s mood.

Thanks to a recent study, exercise may not only affects our bodies, but also our paychecks.

The study led by Vasilios Kosteas, a Cleveland State Economics Professor, found employees who exercise regularly earn 6 to 10 percent higher pay than those who don’t.

While other studies have linked exercise to higher earnings, the cause and effect were not clear. Until now.

Kosteas’ study, published in the June issue of the Journal of Labor Research, used a statistical technique called propensity-score matching. Each subject was scored on whether they fit the profile of someone who exercises, based on factors like age, education level, participation in high school sports.

Kosteas then compared the subjects with similar scores — only some of whom exercise — he found that exercise led to higher earnings even for moderate exercise.

Yahoo Finance reports:

In May, the average American worker earned $23.41 an hour, according to the Labor Department.  Assuming three hours of exercise per week, enough to satisfy the minimum level used in the study, a typical worker’s time spent huffing and puffing is valued by the labor market at $70.23. His extra pay over a 40-hour work week is worth $84.28–about 20% more.

Although Kosteas does note this area needs to be studied further for greater certainty.

Plus, not only can working out get bank you a higher paycheck, being healthy will save you a fortune on health care costs.


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