Exercising Choice: The Economic Determinants of Physical Activity Behaviour

Abstract

Poor diet and a lack of physical activity are major factors to the worldwide obesity epidemic, and make a significant contribution to the overall burden of disease. The determinants of individual participation in physical activity are not well understood. This paper uses a modified time allocation framework to explore how economic and demographic factors influence participation in physical activity. We use data from the first six waves of the Household Income and Labour Dynamics of Australia survey. The analysis examines frequency of participation in physical activity using both standard and generalised random effects ordered probit model. We control for individual heterogeneity as well as exploring differences across gender and employment status. The results indicate that a rising opportunity cost of participating in physical activity significantly impacts on participation. Economic and demographic factors have a stronger impact on employed individuals’ participation. This suggests that policies which make exercise more convenient, and hence decrease the opportunity cost of exercise, will help to encourage more people to participate in physical activity.