Major economic downturns bring large increases in permanent layoffs among workers with high prior tenure on the job. We refer to this type of job loss event as a displacement. Previous research shows that job displacements lead to large and persistent earnings losses for the affected workers. The available evidence also indicates that job displacement leads to less stability in earnings and employment, worse health outcomes, higher mortality, lower achievements by children, and other unwelcome consequences. This talk will explore a recent study by von Wachter and his colleagues.