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Research ArticleArticles

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

Shushanik Margaryan, Nils Saniter, Mathias Schumann and Thomas Siedler
Journal of Human Resources, July 2022, 57 (4) 1242-1275; DOI: https://doi.org/10.3368/jhr.57.4.0418-9460R2
Shushanik Margaryan
Shushanik Margaryan is a postdoctoral fellow at the University of Potsdam.
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Nils Saniter
Nils Saniter is a former Ph.D. student at DIW Berlin and an IZA Bonn fellow.
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Mathias Schumann
Mathias Schumann is a former Ph.D. student at the Universität Hamburg.
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Thomas Siedler
Thomas Siedler () is a professor at the University of Potsdam and an IZA Bonn fellow.
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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 Classification:
  • I23
  • J01
  • J31
  • Received April 2018.
  • Accepted March 2020.

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Journal of Human Resources: 57 (4)
Journal of Human Resources
Vol. 57, Issue 4
1 Jul 2022
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Do Internships Pay Off? The Effects of Student Internships on Earnings
Shushanik Margaryan, Nils Saniter, Mathias Schumann, Thomas Siedler
Journal of Human Resources Jul 2022, 57 (4) 1242-1275; DOI: 10.3368/jhr.57.4.0418-9460R2

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Do Internships Pay Off? The Effects of Student Internships on Earnings
Shushanik Margaryan, Nils Saniter, Mathias Schumann, Thomas Siedler
Journal of Human Resources Jul 2022, 57 (4) 1242-1275; DOI: 10.3368/jhr.57.4.0418-9460R2
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Keywords

  • I23
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