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 |
|---|---|
| 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 |
