I've heard stories of how people looking for jobs have been turned down by companies because they are over-qualified, even when they are willing to take a (sometime substantial) pay-cut.
Why do companies not want to hire people who are over-qualified for the job? Wouldn't it make sense for a company to hire someone especially when they are over-qualified for the job (i.e. PhD for a high-school teaching job) if the person in question is willing to take a paycut/accept what the company is offering for the job?
Why do I keep hearing stories of people being rejected for jobs due to being over-qualified?
Is the phrase over-qualified simply a go-to term that companies/recruiters use to reject an applicant?