A lack of adequate exercise threatens human health, weakening human capital accumulation. The relationship between exercise and income has become the focus of attention in health economics. In terms of reducing body weight and improving physical fitness, diet and physical exercise are intertwined and become effective ways to shape a healthy state. Based on individual-level survey data from China, this study quantified the economic returns of habitual exercise behavior by using an endogenous switching regression model (ESRM) to eliminate selection bias. The study shows that (1) participants in the group with regular exercise behavior increased their income by 3.79% compared with those not exercising regularly; (2) for the group with no regular exercise behavior, regular exercise increased their income by 13.36% compared with those not exercising regularly. Additionally, empirical evidence shows that both drinking and smoking can significantly increase individual income, despite unhealthy habits. These results suggest that the habit of regular physical activity plays a vital role in increasing individual income and improving overall national health, and the effect of individual behavior on income is affected by national culture. The outcomes are empirical evidence for the Chinese government to promote Healthy China Action and support developing countries worldwide to enable habitual exercise, stimulating a policy of exercise behavior.
Keywords: china; diet; endogenous switching regression model; exercise habit; income level.