Ohio History Journal

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Book Reviews

Book Reviews

 

 

 

Financing Unemployment Compensation: Ohio's Experience. By Edison L.

Bowers, Paul G. Craig, and William Papier. Bureau of Business Research

Monograph Number 89. (Columbus: Ohio State University, College of

Commerce and Administration, 1957. xx 314p.; bibliography. $4.00.)

An important function of state government in the industrialized society of

our day is the organization and administration of an effective system of

unemployment compensation. Ohio, which is well on the way to becoming

the leading industrial state in the nation, has given systematic attention to

the problem of unemployment for over six decades, beginning in 1890

when she became the first state to establish free employment offices.

Despite this record, it was not until 1936 (four years after Wisconsin's

pioneer effort) that Ohio passed its first unemployment compensation act.

The basic principles of this law still remain on the books although on

various occasions subsequent legislatures have changed its provisions for

weekly benefit amounts and rates of employment contributions.

Since this law has been in operation, the state government has paid weekly

benefits to unemployed persons ranging in annual total amounts from

$1,000,000 to $126,000,000 and has accumulated a reserve fund of over

$679,000,000, due partially to the fact that unemployment in Ohio has

been at a much lower rate than had been anticipated. The increasing size

of the reserve against the background of low unemployment figures has

raised a number of questions concerning the financial aspects of the state

unemployment compensation, such as (1) how large a reserve is needed

at a given time? (2) at what point might the reserve fund be lowered

without endangering the solvency of the system? (3) how are the costs of

unemployment compensation likely to be affected in the future by the legis-

lative changes and economic conditions which affect the income and outgo

of the reserve fund? and perhaps even more importantly, (4) can the

unemployment conditions of past years be looked upon as indicative of

future conditions?

It was for the purpose of examining questions such as these that the

authors of this volume have attempted the first comprehensive analysis that

has been made of the financial aspects of the Ohio unemployment compensa-