I have actually seen this happen.<p>In the private sector there is a bias to cut out 
overqualified candidates ex: MS or several years experience for entry level work. The assumption is someone may need a job now in a downturn, but that would  move on quickly or have higher salary expectations.<p>Asking about it someone also said &quot;People also flat out lie which makes a significant qualification &#x2F; role mismatch suspicious.&quot;<p>And finally, I suspect there may be some jealousy involved.