evaluated as a share of
value produced. As
shown in figure 3, labor 1
costs generally followed 8
an increasing trend from a& -
1984 through 1991. s I Ifirm
Labor costs for all firms >
increased by 39 percent /
during this period, from b \ highly proft.bl firm
25 percent of value t ,
produced in 1984 to 35 ,
percent in 1991. / \
 20% I \ -
Profitable firms had ', -
substantially lower labor .
costs overall, but had
even more markedly 1as i I i
 1984 1985 1986 1987 1988 1999 1990 1991
increased costs, from Year
17 percent of value
produced in 1984 to 29 Figure 3--Labor costs as a share of value produced, including wages,
percent in 1991. In salaries, payroll taxes, and fringe benefits.
contrast to the general
trends, flowering plant nurseries showed a decrease in labor costs from 42 percent
of value produced in 1984 to 29 percent in 1991, reflecting their improved
productivity.
 The rate of increase in labor costs was not discernably different in the pre-IRCA
and post-IRCA periods (1984-1987, 1988-1991, respectively). This does not support
the hypothesis that immigration reform caused a tightening of labor supply which
would increase labor costs. However, neither does this rule out the possibility that
changes in labor supply brought about by change in immigration policy reinforced
labor market trends already underway.


Concluding Statement. From the three indicators examined (labor productivity, capital-
labor intensity, and labor costs), there is no strong evidence to conclude that IRCA
legislation acted as an impediment to the supply and availability of labor to the nursery
industry. At the same time, neither does the data indicate what measures or actions
employers may have taken to circumvent or blunt the impact of this legislation.


 Nursery Labor-- 1988 vs 1993 Studies

 In the spring and summer of 1988, a study was conducted for the purpose of
determining wage rates to seasonal workers, prospective labor supplies, and the likely
impact of IRCA upon the availability of seasonal workers (9). Although the full impact