One can see this issue best in the comparative differences between large and small firms. Large firms can pay their top people better, because their work is spread over greater operations. Also employees at large firms will specialize more, which makes them a lot more efficient at solving problems. But large firms have much greater coordination issues. I work at a large firm, and the result in almost constant meetings. How do you get stuff done when you always have to explain what you are doing to other departments, and get clearance from these other departments, many of which will make decisions based on their own provincial departmental benefits, not on firm benefits as a whole? Smaller firms avoid many of these coordination problems, but they simply are not as skilled in getting many of their problems solved. Thus they will much easier avoid the ketchup/mustard issue you referred to, but maybe have lower quality sauce for both. Different industries have different needs, so that will affect the dispersion of small firms vs large in a given industry.
There was the bracero program from 1942 until 1964, which was shut down for being too exploitative towards the workers. So, naturally, the response was to make all migrant workers illegal, which made them unable to seek protection from American law and allowed their employers to exploit them even more. And all this is well before the boom in illegal permanent immigration, which started some years after the law changed in 1965.
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