Does Exercise Keep Your Wallet Healthy?

What is it about?

We provide the first evidence on household financial vulnerability disparities by physical activity using nationally representative data from China Family Panel Studies 2014–2018. Our LPM models show that physical activity helps to reduce the probability of household financial vulnerability by an average of 18 cases per 1000 households, ceteris paribus. In particular, this effect is more significant among household heads with abnormal BMI and those who are middle-aged or elderly. These disparities persist even after individual and household characteristics are controlled. We further show that physical activity can mitigate household financial vulnerability by enhancing health and social networks. Our study highlights physical activity as a novel factor in maintaining household financial stability.

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Why is it important?

In this paper, we have the following major findinds: Physical activity helps to reduce household financial vulnerability. The alleviation effect is stronger among household heads with abnormal BMI. The alleviation effect is stronger among middle-aged or elderly household heads. Enhancing health and social networks are two major channels.