ABSTRACT
Happiness research is widely recognized and has emerged as one of the most popular areas in current economic research. Numerous previous studies provide significant insights into the determinants and consequences of subjective well-being. Still, only a limited number of studies have applied happiness research to sport. We contribute to the existing literature by analyzing the causal relationship between happiness and sport. Using longitudinal data from the German Socio-Economic Panel (GSOEP), we find a positive correlation between sport participation and reported life satisfaction, which is stronger for people in bad health compared to those in average health. We further provide evidence for both causal directions: Individuals who engage in sport become happier, and people who are increasingly happy become more willing to participate in sport. However, the effect of sport participation on subjective well-being clearly dominates the reverse causal effect.
