Thinking that demand is fixed would indeed be a flaw. But the right wikipedia link here is https://en.wikipedia.org/wiki/Supply_and_demand https://en.wikipedia.

Thinking that demand is fixed would indeed be a flaw. But the right wikipedia link here is https://en.wikipedia.org/wiki/Supply_and_demand https://en.wikipedia.org/wiki/Supply_and_demand : demand curves slope downwards. More sellers (of a given kind of labour) means does mean higher volumes, but also lower prices (wages). GP's intuition is correct. I don't have links handy but it's my understanding that serious studies reliably back this up. There are other effects too of course. Letting in Sergey Brin may have competed down CEO wages (as per theory) but arguably more importantly drove up demand for engineers. Letting in lots of H1B engineers no doubt drives up demand for gardeners & house-cleaners.