Do internships pay off?
- We study the causal effect of student internship experience in firms on earnings later in life. We use mandatory firm internships at German universities as an instrument for doing a firm internship while attending university. Employing longitudinal data from graduate surveys, we find positive and significant earnings returns of about 6 percent in both ordinary least squares (OLS) and instrumental variables (IV) regressions. The positive returns are particularly pronounced for individuals and areas of study that are characterized by a weak labor market orientation. The empirical findings show that graduates who completed a firm internship face a lower risk of unemployment during the first year of their careers, suggesting a smoother transition to the labor market.
Author details: | Shushanik MargaryanORCiDGND, Nils SaniterGND, Mathias Schumann, Thomas SiedlerORCiDGND |
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DOI: | https://doi.org/10.3368/jhr.57.4.0418-9460R2 |
ISSN: | 0022-166X |
ISSN: | 1548-8004 |
Title of parent work (English): | Journal of human resources |
Subtitle (English): | the effects of student internships on earnings |
Publisher: | University of Wisconsin Press |
Place of publishing: | Madison |
Publication type: | Working Paper |
Language: | English |
Date of first publication: | 2022/07/01 |
Publication year: | 2022 |
Release date: | 2024/01/17 |
Volume: | 57 |
Issue: | 4 |
Number of pages: | 34 |
First page: | 1242 |
Last Page: | 1275 |
Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften |
Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften / Fachgruppe Volkswirtschaftslehre | |
DDC classification: | 3 Sozialwissenschaften / 30 Sozialwissenschaften, Soziologie / 300 Sozialwissenschaften |
3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft | |
Peer review: | Referiert |