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Author:Oyer, P.
Schaefer, S.
Title:Litigation Costs and Returns to Experience
Journal:American Economic Review
2002 : JUN, VOL. 92:3, p. 683-705
Index terms:COSTS
EXPERIENCE
MODELS
EMPLOYEES
Language:eng
Abstract:The authors develop a model linking maximum damage awards available to plaintiffs in wrongful termination lawsuits, workers' propensity to sue as a function of experience, and returns to experience. Using Equal Employment Opportunity Commission data on protected- worker discrimination complaints and labor-market data from the Current Population Survey, the authors examine how returns to experience among protected workers changed around the passage of the Civil Rights Act of 1991. The authors show that employers' reactions to employment protections may induce redistributive effects. Furthermore, these effects operate not merely across groups of differing protected status, but also within groups of identical protected status.
SCIMA record nr: 243442
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