This paper examines the effect of accumulated human capital,and particularly occupational human capital,on the earnings losses of displaced workers.Unlike previous studies on job displacement,this paper uses a continuous measure of occupational skills transferability to measure the similarity between the pre- and post-displacement occupations of reemployed displaced workers.Using the 2004 and 2006 Displaced Worker Survey (DWS),the main finding is that post-displacement earnings losses are highly correlated with the degree of similarity between pre- and post-displacement occupations.Displaced workers who find jobs in occupations similar to their previous jobs suffer smaller earnings losses than those who find less similar jobs.This relationship is non-linear in that higher skills transferability lowers the earnings losses at a decreasing rate as the transferability of occupational skills increases.