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Overeducation, Overskilling and Mental Well-being

Author

Listed:
  • Zhu Rong

    (School of Economics and Finance, Xi’an Jiaotong University, China; National Institute of Labour Studies, Flinders University, Australia)

  • Chen Linfeng

    (School of Economics and Finance, University of Hong Kong, Pokfulam Road, Hong Kong)

Abstract

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.

Suggested Citation

  • Zhu Rong & Chen Linfeng, 2016. "Overeducation, Overskilling and Mental Well-being," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(4), pages 1-33, October.
    • Handle: RePEc:bpj:bejeap:v:16:y:2016:i:4:p:33:n:8
    DOI: 10.1515/bejeap-2015-0187
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    References listed on IDEAS

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    Cited by:

    1. Galina Besstremyannaya & Sergei Golovan, 2019. "Reconsideration of a simple approach to quantile regression for panel data: a comment on the Canay (2011) fixed effects estimator," Working Papers w0249, Center for Economic and Financial Research (CEFIR).
    2. Budría, Santiago & Martínez-de-Ibarreta, Carlos, 2021. "Education and skill mismatches among immigrants: The impact of host language proficiency," Economics of Education Review, Elsevier, vol. 84(C).
    3. Dominik Buttler, 2022. "Employment Status and Well-Being Among Young Individuals. Why Do We Observe Cross-Country Differences?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 409-437, November.
    4. Galina Besstremyannaya & Sergei Golovan, 2019. "Reconsideration of a simple approach to quantile regression for panel data: a comment on the Canay (2011) fixed effects estimator," Working Papers w0249, New Economic School (NES).

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    More about this item

    Keywords

    overeducation; overskilling; mental well-being; panel quantile regression;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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