Overeducation, Overskilling and Mental Well-being

Rong Zhu, Linfeng Chen

    Research output: Contribution to journalArticlepeer-review

    8 Citations (Scopus)


    This paper estimates the effects of overeducation and overskilling on mental well-being in Australia. Using fixed-effects (FE) panel estimations, our analysis shows that overeducation does not significantly affect people's mental well-being. However, overskilling has strong detrimental consequences for mental well-being. Using a panel data quantile regression model with FE, we show that the negative effects of overskilling are highly heterogeneous, with larger impact at the lower end of the distribution of mental well-being. Furthermore, our dynamic analysis shows that the damaging effects of overskilling are transitory, and we find evidence of complete mental well-being adaptation one year after becoming overskilled.

    Original languageEnglish
    Pages (from-to)1-33
    Number of pages33
    JournalThe B.E. Journal of Economic Analysis & Policy
    Issue number4
    Publication statusPublished - 1 Oct 2016


    • mental well-being
    • overeducation
    • overskilling
    • panel quantile regression


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