In a previous column, I discussed the unemployment effects of Congress’ 2007 minimum wage increase on the canning industry in American Samoa, a U.S. territory in the far Pacific Ocean.

The 2007 legislation mandated 50-cent annual increases in Samoa’s minimum wage until it reached the U.S. mainland’s hourly minimum of $7.25. In response, Chicken of the Sea International moved its operation from Samoa to a highly automated cannery in Lyons, Ga.

That resulted in roughly 2,000 jobs lost in Samoa and a gain of 200 jobs in Georgia. Before the minimum wage increases, Samoan wages were about $3.25 an hour. With the legislated increases, Samoa’s minimum wage is now $5.25.

So the question is: Which is preferable for the Samoan worker — being employed at $3.25 an hour or being unemployed at $5.25?

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