--- In [EMAIL PROTECTED], Gautam Mukunda <[EMAIL PROTECTED]> wrote: > --- Dan Minette <[EMAIL PROTECTED]> wrote: > > I hope this helps to clarify things. > > > > Dan M. > > I think it does - I'm not sure that we disagree at > all. If the decrease in the demand for labor is > uniform across all industrialized countries, then it > may be reasonable to assume it as a given (I don't > know that Borjas does). > > I'm not sure, though, that your numbers on labor > supply increase include illegals - if they don't, then > that doesn't take into account a huge factor, both > because of the huge # of illegals and because they > have a larger impact than their pure numbers would imply.
The other factor it doesn't seem to adress is the skill of the labor itself. Not all labor is the same. I'm treading a thin line here again, I know. I am suggesting that the quality of the work performed may have an effect on the demand as well. If enough workers who produce low quality results enter the market, then differentiating those capable of high quality becomes nearly imposible. This in turn drives down the compensation for everyone, even though there is a differnce in the product. This is used as a technique by record companies to try and make downloading music for free unworthwhile. They put so many bad files out that people get tired of looking for a good one and go buy the CD. If the labor pool is seen as evenly producing a low quality of product, the intracacy and dificulty that will be attepted may decrease, thus lowering the demand for those capable of producing high quality work. There may be those capable of producing that high quality, and they may be willing to work for only a little more than those who are not capable, but those wanting the work to be done may not be able to tell the difference, and thus select to do a more simple or easier solution. I have no references for this, becouse it is just something I have noticed anicdotaly. I would not know how to test for this, or rather, how to isolate this factor. I am interested however in what Dan's and Gautam's opinions. _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
