Do Internships Pay Off? The Effects of Student Internships on Earnings

Shushanik Margaryan, Nils Saniter, Mathias Schumann and Thomas Siedler

Journal of Human Resources, 2022, vol. 57, issue 4, 1242-1275

Abstract: 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.

JEL-codes: I23 J01 J31 (search for similar items in EconPapers)
Date: 2022
Note: DOI: 10.3368/jhr.57.4.0418-9460R2
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Citations: View citations in EconPapers (6)

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Working Paper: Do Internships Pay Off? The Effects of Student Internships on Earnings (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:57:y:2022:i:4:p:1242-1275

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