Structural changes in industry annually displace millions of American workers. As concern over this displacement phenomenon has increased, so too has the effort to define and measure its social costs. Using data from the 1984 and 1986 Displaced Workers Survey, this paper critically examines how displacement has been defined, its costs measured, and its associated joblessness interpreted. The findings are that: (1) the official definition of the displaced worker understates the magnitude of current economic dislocations, (2) the conventional emphasis upon the human capital components of earnings loss obscures the disproportionate impact of displacement upon women and minorities, and (3) voluntaristic interpretations of labor market outcomes are difficult to reconcile with the duration and incidence of post-displacement joblessness. Finally, I discuss the implications of these findings for understanding the social costs of job displacement.
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