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At least in the US, I don't think people appreciate how expensive "expensive" actually is to encourage people to work in a part of the country where no one want
by jandrewrogers 7y ago
At least in the US, I don't think people appreciate how expensive "expensive" actually is to encourage people to work in a part of the country where no one wants to live. You see the same issue with hiring labor for oil fields in places like North Dakota, where it requires six-figure pay to entice a marginally skilled worker to move out there.
Agriculture has an identical problem in terms of the market clearing wage for labor, except they don't have the profit margins of the oil fields that allow them to throw $100+k at farm labor to make the problem go away. In that version of the world, it would be better to be farm labor than a farmer. It should also be noted that in some parts of the US, the migrant labor is not "cheap" either by any normal definition as they are paid well above the median wage in the US since they have all of the leverage.
When I was growing up a significant fraction of farm labor in my area was ex-convicts from all over the country. The labor supply was so short that it was one of the best paying jobs that would readily hire an ex-convict. You still see some of this but it is greatly reduced, mostly just convicts who are from rural regions and are already accustomed to that environment.