Members of certain groups have the right to sue employers if discriminated against. Other things the same, then according to the model of quasi-fixed costs, this right will tend to

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According to the model of quasi-fixed costs, when employers face higher costs associated with hiring and firing, they tend to reduce employment to offset those costs. If certain groups have the legal right to sue if discriminated against, then employers may perceive hiring those individuals as riskier since they could potentially face a lawsuit. This may increase the costs associated with hiring and firing, and therefore reduce employment.

Members of Certain Groups Have the Right to Sue Employers