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Originally Posted by Jeremiah
Are they really pushing down the price of labor or is industry pushing down the price of labor by setting the wage? Who do you think negotiates the wage at these jobs? It is certainly not the employee.
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The fact that they are able to come across the border as a mass workforce changes the makeup of the pool of potential employees. It infuses that pool with a high number of people who are willing to work for less because they are more desperate for the money. So, their presence drives down the price of labor.
It's something that happens at the system level, not the individual level of Jose saying, "I'll work for $3.50 an hour and not a penny more."