Yes, composted paper does make for good plant soil. As long as the paper you add to your composting bin is not contaminated with oils or chemicals it will be good for your compost pile. Newspapers and other printed materials are printed with soy ink, so that also is ok to compost and use as soil. Its recommended that you break the paper into small pieces or mix it with water to break the fibers up so it will compost easier.
In all depends on what kind of paper you use. Glossy paper; NO, this includes magazines and most add inserts. Newsprint; maybe, avoid color inks they may contain heavy metals.
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