We analyze the impact of participation in sports activities during adolescence and as an adult on labour market earnings. Sport might increase productivity due to better physical and social skills. Using the rich information from the German Socio-Economic Panel (GSOEP), we estimate earnings functions with different sets of control variables. Large parts of the wage premium are explained by higher educational attainment of individuals who have participated in youth sports and who do sports as an adult. However, even after controlling for many productivity relevant characteristics (e. g., education, health, and soft skills) and sorting into firms and industries, sizable wage premiums remain. Interesting gender differences arise. Whereas youth sport effects are larger for females than for males, adult sport has only a positive wage effect for males.
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