Abstract:It is known that over-education causes the phenomenon that many laborers could not have the best play for their talents in the current labor market, but there is no consistent conclusion as to whether over-education has impacts on their subjective well-being. This study, on the basis of reviewing the existing research literature on the relationship between over-education, education, job matching, and subjective well-being, and by employing the ordered regression model by using the 2013 China General Social Survey data (CGSS), demonstrates that over-education, both in terms of virtual variables and continuous variables, has a significant negative effect on residents' subjective well-being. Thus, it has solved the problem of robustness of the estimated results. In addition, over-education has not only a direct, but also an indirect impact on residents' subjective well-being by affecting their relative social grades, absolute income and other intermediary variables. However, its direct impact is still dominant. Therefore, we should enhance laborers' happiness by improving the healthy development of the labor market and promoting the effective flow and job match of highly educated talents.