The consequences of sampling errors in estimating a simple labour demand model, using panel data of firms is discussed. It is found that the sampling errors of the variables at the firm-level due to the sampling process at the employee-level, have a substantial influence on the estimates of the...

It is demonstrated that for existing firms quits are important in the destruction of jobs. Although layoffs are relatively more used than quits, it is found that in absolute terms a substantial part of the destruction is accomplished through quits.