This monograph describes and evaluates state initiatives dealing with displaced workers. These initiatives include the provision of programs to retain jobs and encourage economic development, as well as reemployment assistance provided directly to workers in the form of retraining programs and job search workshops. The focus is on more innovative state initiatives. The monograph is organized in six chapters. The first chapter defines the problem and continues with an overview of some of the policy issues relating to worker displacement, especially the incidence of displacement and whether government should be expected to provide displaced workers with special assistance. Chapter 2 focuses on state initiatives to upgrade the vocational skills of displaced workers through classroom and on-the-job training programs. Chapter 3 describes the component services of a broadly defined job search assistance program and discusses the results from several demonstration projects that measure the net impact of this type of assistance. Chapter 4 considers the timing and location of program intervention, including state laws, federal laws, and state onsite assistance programs. Chapter 5 includes a consideration of other initiatives, such as programs providing assistance to employee groups to save jobs, enterprise zone proposals, and British and French plans to promote entrepreneurism. The final chapter pulls together the results of the study and suggests answers to six key policy questions, concluding with a consideration of what appears to be the best mix of programs to meet the needs of displaced workers. The document includes 104 references and an index. (KC)