It does. If one of your classes is more than 1 class higher or lower than the other ones, you suffer a 20% xp penalty.
However, for this purpose, the favoured class counts as not being there at all. In the case of humans and half-elves, the highest class counts as not being there.
What's more, prestige classes don't count either. All that makes that you are very unlikely to suffer those penalties, you really have to try hard for that.
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