I hate to say it, but unfortunately I have heard similar tales. The higher up you go on the educational ladder, the more you will see rejection by some places. Not all places do that, but I know of quite a few that do. For some places it makes sense to do so, but for some it doesn't. Example: You get a degree in a field where jobs are scarce, let's say anthropology. You get an associates and you're fine, most places will hire you. Lots of people have associates degrees. You get your bachelors, places are starting to reject you because you're overqualified for the menial work you wish to undertake while searching for something that matches your degree but you can generally find something if you keep looking. You get your masters or doctorate, it is extremely unlikely to get hired for a job that doesn't deal with your degree because businesses look at your application and go "They're just wanting a job till they can find something better that deals with anthropology. Not hiring because they'll leave as soon as they find something and then we trained them and spent all that time and money on them for nothing."
At least, that is the way that it appears to me from the tales that I have heard.
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