AbstractThis 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

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... 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.