from Truthdig:
Pitting Worker Against WorkerPosted on Apr 30, 2010
By Moshe Adler
Editor’s note: In this May Day special feature, economist Moshe Adler argues that the answer to our immigration, labor and broader economic problems is more immigration and more welfare for all.All that is wrong with our immigration and labor policies—for the two cannot be separated—is on full display in New York City, where it plays out every day in the city’s small grocery stores. Virtually all of the workers in these stores are undocumented Latin American immigrants. Yet in the adjacent supermarkets, the same jobs are held by American-born workers of all colors. The usual excuse that these are jobs that “Americans won’t do” obviously doesn’t apply. What is the explanation then?
In 2002, then-New York state Attorney General Eliot Spitzer discovered the answer: The small grocery stores pay their workers about half the minimum wage. And what did he do about it? Not much. In exchange for a promise from the grocery store owners not to do it again, he forgave them for their past wage theft. What Spitzer did not do was hire workers to enforce the minimum wage law. (This would have required tax money, and he had his eye on the governorship.) Instead, Spitzer devised a plan by which the merchants would pay for the enforcement themselves. Nothing came of it. Eight years later, the workers in these small grocery stores are still overwhelmingly undocumented immigrants and there is little doubt that their employers continue to steal their wages.
Do illegal immigrants depress the wages of other workers? Of course they do. Supermarket owners will refuse to pay much higher wages than the wages that their competitors pay. Yet the law is not enforced, either against the illegal immigrants, although they swell the ranks of those who seek employment, or against the employers, even though they hire these immigrants at illegally low wages. What is a worker to do?
The academic literature about whether immigration depresses wages is contradictory; some studies find that it does, while others find it does not. But all of these studies suffer from the same methodological problem, which is that interpreting them requires broad assumptions that may not actually hold. These assumptions are significant enough that each camp can continue to dismiss the other. When I present these studies to those of my students who are union construction workers, they laugh them off. They have no use for complex mathematical models when they can drag anybody to construction sites that employ illegal immigrants at low wages—and they know firsthand that this puts direct downward pressure on their own wages. This is what employers tell them. “You are too expensive,” they hear all too often. ..........(more)
The complete piece is at:
http://www.truthdig.com/report/item/pitting_worker_against_worker_20100430/