Does anyone know of a situation where prices have come down as a result of cheap(er) labor? I have a lawn service that over time has started incorporating a larger hispanic population (percentage wise). They have never lowered their rates -- in fact they have incresed over time at the same rate as if nothing happened.
Problem is, this is an experiment without a control - as is often the case with economic hypotheses. How does this compare with lawn services that have
not hired increasing numbers of (illegal) hispanics?
Have retail prices lowered in stores that hire illegals? Have restaurants lowered menu prices?
Obviously not, but again, you don't have a control population to compare to. If half the restaurants in your town replaced all their illegals and the other half didn't, you'd have a meaningful comparison if the restaurants with legal employees raised their prices 15% over a year, while the rest raised their prices only 5%. Wages are a cost of doing business, just like rent, and in a truly free market environment, prices will reflect the costs of doing business.
BPSCG, did the outfit that dug up your yard charge you any less than they would have otherwise had they not used illegals? (Did they say to you that since we're using these guys instead of the heavy expensive rigs, we're charging you less?)
It would have cost me
less if they could have gotten the backhoe into the back yard. But to answer the question you're really asking, no, they didn't say, "Hey, we're going to save you some money by using illegals; would you prefer to pay more for legals?", and I certainly didn't ask.
Is it possible to obtain quotes from those that do not have hispanic workers? (I understand that this might not even be remotely possible to do
Bingo. Actually, in some cases, it can be done; we had some landscaping done after the plumbing job (you wouldn't believe the wreckage the first plumber left before we fired him...don't get me started...) and a couple of the landscape companies made it a point to tell me they did no subcontracting, that all their employees were full-time, salaried, and, presumably, legal employees. Ditto when we had the windows replaced last year; of course, window installers need more skills than ditch-diggers, but the point remains that just because there are a bunch of guys crawling all over your house doesn't mean they're necessarily illegals.
-- but the greater point is, did labor contracts to residential individuals such as yourself see a decline or even stagnation in prices for having work done?
Don't follow.
My issue is, have we as individuals really seen much benefit from this cheap labor force, or is it only showing up on company leger books?
Almost certainly both. If lawn mowing service A is paying four times as much in wages as service B, and wages makes up half his cost of doing business, he's going to have to charge 25% more than B, all other factors being equal, to make the same profit. How long is he going to stay in business, at that rate?