For those who welcome the idea that unskilled labor should have “crappy jobs that pa(y) shit wages” (so that they can eat more cheaply in restaurants and stay overnight in hotels for less), here’s an interesting column from Froma Harrop:
*The U.S. Chamber of Commerce likes to wail about the “labor shortage.” It says there aren’t enough chambermaids, dishwashers, etc. to work for its members at lousy wages. Odd, but when there’s a shortage of labor — or anything else — doesn’t the price of it go up?
The price of unskilled labor in the United States hasn’t gone up. It has gone down. Because of immigration, American-born high-school dropouts experienced a 5-percent loss in wages during the '80s and '90s, according to a study by Harvard economist George Borjas.
For some reason, the job of keeping prices low has fallen entirely on the shoulders of the most vulnerable Americans. If we banged down CEO compensation and sliced lawyers’ pay by a third, the same thing would happen. Everyone’s prices would drop. The corporation could sell its products for less, and the cost of legal services would fall.
No vocation keeps a tighter lid on immigration than the medical profession. “If we let in 100,000 immigrant doctors,” Richard Freeman, another Harvard economist, recently told a group of journalists, “everyone in this room would benefit.” Except the American doctors.
Suggest a U.S. labor policy that depresses professional pay as a means of keeping prices in check, and you get laughed out of the room. But say that sitting on the wages of unskilled factory workers stems inflationary pressure — a frequent argument — and the Ph.D.s quietly nod in agreement.*
The likely response to this is something like “well, just stay in school…go to college and there’ll be lots of good opportunities for you.” And for those not fortunate enough to have the educational opportunities - well, it’s good policy to force down wages by allowing employers to get away with hiring illegal immigrants - right?
Except, apparently if it were to affect professionals. I’d love to see the N.Y Times editorialists and columnists who blat about this subject, compete with commentators from abroad for half the pay.