Economics question. Does cheap foreign labor drive down wages for everybody else, in a given economy?

Economics question. Does cheap foreign labor drive down wages for everybody else, in a given economy?

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Internal or aboard?

Internal. And abroad, too, I guess, because foreign labor affects both the economy the laborer comes from and the economy he enters into. I'm more interested in internal consequences within the economy the foreign labor moves into.

Well it depends. Are the foreign labour substitutes for the domestic labour? It would probably drive down the wages for unskilled labour, if the foreign labour is willing to work for less and are able to substitute the domestic labour. However the more expensive labour (skilled workers, managers, leaders etc. people with an education) would not be affected much. Only if the affected domestic undskilled labour gets an education, and thereby raises the supply of more expensive labour

>Are the foreign labour substitutes for the domestic labour? It would probably drive down the wages for unskilled labour, if the foreign labour is willing to work for less and are able to substitute the domestic labour.
I'm specifically thinking about undocumented Mexican migrants working on American strawberry, etc. farms. Though you usually hear that Americans don't want those jobs, anyway, which means that produce prices fall as wages remain basically level. At least that's what I was told last night by one of my professors.

All other variables held equal, yes. The labour supply curve shifts right and the equilibrium price of work is pushed downward. However, this is a somewhat simple answer and this effect is likely to be short run

You pretty much answered your own question.
If no american is willing to accept the job and mexicans are, it wouldn't have an effect on the wages on anybody else than those who work there. If the illegal immigrants will work for less than those who already work there, then it would drive down the wages of those on the farms. The problem would arise if the mexicans take the work from someone else. It would force those people into other sectors or to accept a lower wage. This could theoretically spread through society, as those from the strawberryfarm may require a lower wage, and thereby forcing the wages down elsewere. This is however unlikely and the effect would be close to nothing.

If nobody wants to work there at all, the strawberryfarms would have to raise the wages to attract employees.

It drives down the effective wages of the labor it competes with but raises the effective wages of everyone else, because cheaper labor = cheaper goods

How does this affect the Revolution, comrades?

>the lowered price of goods balances out the lowered wage
That's a pretty damn big assumption you know.
I would really like to see a study on how lowered wages impact consumption.