Yeah but that's what I'm saying, once you've hired them then you might find out different but purely within the hiring process a PhD is preferrable to a BS. And the predicament may be tough but if there is no solution to it, why even take it into consideration? That's why I asked what you would do about it.

"All things being equal" is a very contrived situation. I think a better question is whether you'd pick a PhD candidate over a BS who, for example, could code a little bit better. (And for me the answer is I'd probably pick the BS, but I'd have to justify it to the people above me, which could be a challenge.)

Well sure but "all thing being equal" is what someone who is considering whether to go for further schooling is considering. I'm me, I have all my qualities, would I be more likely to be hired (and get a higher wage) w/ a BS or w/ a PhD? That's why I pose it that way and that's why I ask for what your answer to this problem is, it's not about who you would pick, it's about what drives people to "overachieve" in their credentialling in the first place.