Measurement error in an independent variable is one reason why OLS estimates may not be consistent. However, as shown by Dagenais (1994), in some circumstances the OLS bias may be ameliorated somewhat given the presence of serially correlated disturbances, and OLS may prove superior to standard...

For the period 1984-1997, we find that state-level minimum wage hikes had no negative employment impact whereas federal hikes did. This dichotomy may account for the differences between the results of the 'new economics of the minimum wage' and time series studies.