FLORIDA'S NURSERY INDUSTRY:
 LABOR USE AND THE IMPACT OF IMMIGRATION REFORM


 John J. Haydu and Alan W. Hodges
 Food and Resource Economics Department
 University of Florida
 Gainesville, Florida 32611




 Abstract

Three separate studies were examined to evaluate the supply and availability of labor
in Florida's nursery industry. All three studies lead us to the same conclusion, that
the IRCA legislation has had little or no impact on Florida's ornamental nurseries. The
wage and benefit study found that some nurseries experienced significant turnover
rates, suggesting low pay and relatively easy access to labor. Similarly, financial
indicators examined from the Business Analysis data, suggested that firms were not
hampered from a labor shortage. If immigration reform had restricted labor supplies
significantly, compensating actions by nurseries would be expected, such as a
substitution of capital for labor, higher labor costs, and greater productivity per
employee. No such evidence could be found, indicating that IRCA was not a major
impediment for the industry during this period. Finally, results of the labor study
completed in March 1993 also gave no indication of labor supply restrictions. In fact,
perhaps the most conclusive evidence was in the assertions of respondents: the
number who claimed that supplies were adequate or abundant increased from 82
percent in 1988 to 89 percent in 1993; the number who stated that immigration laws
did not adversely affect labor supplies grew from 47 to 60 percent, a substantial
increase.


Key words: Labor supply, Florida nurseries, immigration, wage rates, labor
productivity, capital-labor intensity, labor costs.


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