The Cost of Unpaid Internships

Although most would agree that paid internships are better than unpaid, many argue that the experience a student gains during an unpaid internship makes it worth it. In fact a recent article in my local paper stated, "Unfortunately, we cannot pay our interns, but we can offer a great life-enhancing experience, in addition, an internship is a tremendous asset on your resume." (1) Design students are lured in with such promises along with the added bonus of creating professional work for their portfolio.The Economic Policy Institute offers a different view in an article entitled, "Unpaid Internships: A Scourge on the Labor Market." The article makes the point that not only are students denied compensation, the loss of associated Social Security taxes, unemployment taxes, or worker’s compensation premiums deprives these funds of needed revenue. Despite the implication of these tax losses nationwide, the federal government has failed to investigate and enforce laws against unpaid internships. Furthermore, as the unemployment rate has risen, so has the age, education level (many interns these days are professionals), and number of unpaid interns. Ironically, the oversupply of people willing to work for nothing actually damages the career prospects of the students who take them.Research done in 2011 by the National Association of Colleges and Employers shows that unpaid internships do very little for the job prospects of the students who take them. The average student who had taken an unpaid internship in a for-profit firm earned $18,000 less than students with paid internships and $3,700 less than the average student who had never taken an internship. Students who had had paid internships in the federal government received salary offers averaging $48,668; their colleagues with unpaid federal internships were offered only $33,127, on average. (2)What do you think, do you need to re-examine your thoughts about unpaid internships?Notes:(1) http://www.recordonline.com/apps/pbcs.dll/article?AID=/20120604/NEWS/206040330&cid=sitesearch(2) http://www.epi.org/blog/unpaid-internships-scourge-labor-market/Sources: http://www.epi.org/blog/unpaid-internships-scourge-labor-market/ http://www.nytimes.com/2006/05/30/opinion/30kamenetz.html?_r=1