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Basic economic theory tells us that employers who discriminate by not hiring people from some demographic groups will suffer an economic penalty because they will

Basic economic theory tells us that employers who discriminate by not hiring people from some demographic groups will suffer an economic penalty because they will sometimes not be hiring the best person for the job. But in the real world this economic penalty does not seem to exist. Why might employers who discriminate against employees from a demographic group by not hiring them, not suffer an economic penalty?

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