Just to start out, doubling wages doesn't mean doubling prices, because wages are not the only cost of production. Transportation, capital, and raw materials, for example, wouldn't change price. So if labour is half of the production cost, and it doubles, then the price would go up by about half.
For the admin overhead difference between legals and illegals, it would depend again on the particular business of course, but while it is easier to just cut the latter a cheque each week, if you also have legal employees then you already do have a system set up to handle their administration, and unless it's terribly unscaleable you won't be incurring too much extra cost by adding the previously excluded illegals into your preexisting admin system. |
