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Unpaid Internships: Bad for Students, Bad for Workers, Bad for Society

80 points| waxymonkeyfrog | 14 years ago |theatlantic.com

107 comments

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[+] phillmv|14 years ago|reply
Do we have a good economic narrative for unpaid internships outside of naturally abusive talent driven industries (music, film, journalism)?

Do internships just fall in this hole where you'd like to have an office wench but can't quite justify it in a budget, or is it entirely a made up social convention where older generations are extracting rents from new graduates?

At any rate, the effect seems pretty clear to me: unpaid internships are huge drivers of inequality. They obviously limit opportunities for social mobility towards people that can be subsidized, or otherwise have access to liquidity. There's something really insidious about pushing people away from increasingly wide classes of cushy jobs they're otherwise perfectly capable of performing.

Startups: pay your (non technical) interns minimum wage, at least. It makes me kind enraged to see this start to happen in our industry.

[+] jreeve|14 years ago|reply
"... unpaid internships are huge drivers of inequality."

I believe that they can be, but as someone who actually had an unpaid intern (and who eventually got said intern a job at the company where we were working), let me make a case that they do not have to be exploitative.

I personally enjoy teaching, and have taught at two different universities. In addition to simply being a rewarding thing to do, it is a good way to get even better at whatever you are teaching.

So when I was the production manager in charge of making a bunch of marketing sites for small insurance agencies, I called up one of the local universities. They were quite happy (after some conversations with their faculty) to send me a student who was getting ready to graduate and who was interested in creating content for the web.

I didn't expect the intern to get any actual work done, just to kind of try and work through some of the projects that we were doing. The work that I was giving him was pretty much the same work that the paid staff were getting, and although we actually did end up using elements of his designs he was much slower and had a much smaller skill set than someone I would actually hire.

However, after a semester of working with us, his markup, scripting, and associated skills were a lot better. In addition to his own efforts, I spent time structuring his work assignments in ways that built from one topic to the next, and was available to critique his work in ways that he found useful.

So, this relationship was mutually beneficial: he is more skilled than he was, has at least some work experience to put down (other than food service), he received course credit (IIRC), and got a picture of what the inside of that kind of agency looks like.

For our part, we got a very small amount of marginal work, and for my personal part I improved my own scripting and CSS skills, in addition to simply enjoying working with folks who are learning.

Now, if we were just trying to fill a minimally skilled position with someone who was an employee and skim by calling them an "intern" instead of "an exploited worker", that would be different.

But I believe it is possible (though perhaps not likely) that unpaid, non-exploitative internship relationships can exist.

[+] jlarocco|14 years ago|reply
Internships aren't for making money, they're for gaining experience. Getting paid for them is nice, but the experience is the important part.

For some companies having to pay interns would just mean they wouldn't offer internships at all.

The reason interns are paid less (or not at all) is that there are lower expectations for interns and other staff usually has to take time to mentor them or check their work.

Maybe not the best example, but if a new paid employee says, "No, I've never used source control, what's that about?" it's a big problem. If an intern says it, you explain it and move on.

[+] __mark__|14 years ago|reply
From what I hear unpaid internships are common for law students as well. It would be interesting to do more research on this, but I suspect unpaid internships happen in any field that has a surplus of workers. The tech industry doesn't have this problem so most internships are paid.
[+] eli_gottlieb|14 years ago|reply
Narrative? Any company is going to take free labor if they can get away with it. The problem here is the clear contravention of labor laws.
[+] j_baker|14 years ago|reply
I think it's much simpler than that. I think it's just that businesses like having free labor. It's much cheaper than paying people, isn't it?
[+] prostoalex|14 years ago|reply
This brings up the question of a value derived from intern's presence. At my first employer out of college non-technical departments hired (unpaid) interns willy-nilly, figuring half of them would turn out to be bozos competent only to run a copy machine or fetch coffee for the team.

Since engineering department paid their interns, they always had to work out some project plans and business necessity in order to have the position(s) open for the summer. So kinda obvious that many students did not get a chance to intern, as with paid internships the company was way more frugal and selective.

[+] davedx|14 years ago|reply
I hope your last sentence is meant to suggest technical interns should be paid above minimum wage, rather than that only non-techs should be paid fairly?
[+] paulgb|14 years ago|reply
I don't buy the argument that unpaid internships are immoral because they disadvantage the underprivileged. Higher education systematically disadvantages the underprivileged, especially at US tuition rates. Does that make going to Harvard unethical? There is clearly a supply/demand mismatch in some industries, and unpaid internships are a symptom, not the cause.

I get defensive when the issue of unpaid internships comes up because I did an unpaid internship in High School, learned a hell of a lot, and was able to use it to gain well-paid internships throughout college.

[+] wvenable|14 years ago|reply
Honestly comparing an unpaid internship in High School is no where near the same as requiring 20-somethings in college and university to work for free. I also did the unpaid internship thing in high school (which turned in a paid job) and I did a fully paid internships in University. I could not afford to work for free as an 18 year old on my own.

It's amazing that in a country with a minimum wage it's still possible to hire people for a job for free.

[+] j_baker|14 years ago|reply
I'd expect that Harvard has at least some scholarships/grants for underprivileged students. Unpaid internships offer no such niceties.
[+] geebee|14 years ago|reply
Unpaid internships seem to be rare for programmers...

- Programmers of any sort who can get the job done in demand. There are more people who want to pay them than programmers available.

- Even inexperienced programmers add value - sometimes a tremendous amount of value. It's not too hard to find a non-critical, short term project that would still be very useful, and the intern starts adding value on day one. So employers are less likely to "do without" if it turns out they have to pay.

- Software interns have a better unpaid internship than the one you're offering - founding their own company. If a recent grad with programming ability is getting outside financial help (the kind that a parent might give to a recent grad doing an unpaid internship in the entertainment industry), that programmer can just try creating an app and seeing how to turn it into something financially viable. They might fail (they probably will fail), but will the experience be worse than a year of not getting paid at a bigco? (It depends, but a lot of companies in high tech would be impressed with someone who took a real crack at creating a financially viable product).

I do occasionally see postings for unpaid cs/engineering internships, posted on campus bulletin boards. They are almost never from actual, high tech companies. These postings generally come from industries accustomed to getting the free interns (publishing, fashion, and so forth) - you know "gain valuable industry experience by writing extenstions in python for our CMS). It feels good to see these posts go up later offering a bit of pay (though still generally much lower than the interns could get elsewhere).

[+] MatthewPhillips|14 years ago|reply
Internships are for people with a knowledge about, but not direct experience in some thing. That can apply as easily to programming as it can journalism.
[+] ianthiel|14 years ago|reply
Why should students who aren't able to get paid internships be denied the right to have an unpaid internship? I would not be where I am today were it not for unpaid internships.

Some people would be helped by mandating all internships be paid, but these are not the people who need the most help. The people who need the most help are the ones that would be cut off from any chance at early work experience by such a system.

The idea of everyone having a paid internship is nice, but many places will simply stop offering them if unpaid interns aren't an option.

Also, no one is forcing these students to work anywhere. Yes, market forces drive them towards an internship, but there are many internships in the market.

If unpaid internships were banned or otherwise made illegal, companies could still bring in students as volunteers, which are unpaid. They would still get the same experience and be in exactly the same position, except now they are no longer eligible for college credit and certain legal protections. How is that a better system?

Are there any compelling arguments why unpaid internships should be made illegal? If not illegal, then how should/could they be reformed?

[+] ThomPete|14 years ago|reply
I got paid during my internship and when I later started a company we always paid our interns.

I think as a general rule internships should be paid simply because if the company can't afford to hire an intern then they shouldn't be having one in the first place.

I realize it's a nice way to get some help for your struggling business and if someone really want to get in to a place that isn't looking for interns then it makes some sense.

[+] davedx|14 years ago|reply
I agree completely. To be honest I don't even understand how it's legal (I'm in the EU). I think through some kind of academia-related loophole.
[+] gms|14 years ago|reply
Organisations have decided that this specific set of internships aren't worth paying a wage for. Workers have decided that they are worth their time, for the experience/foot in the door they gain.

If you ban unpaid internships, companies won't offer the positions anymore (as they have decided their value is zero), which means people seeking them won't be able to obtain them.

Sounds like everyone would actually be worse-off.

[+] evoxed|14 years ago|reply
I can't speak directly about the tech industry, but this is absolutely not the case in architecture and engineering. Your tasks may not be the most critical part of any project, but they are incredibly time intensive and would otherwise cost the firm a huge chunk of money. CAD monkeys are the quickest example, although physical model builders get quite a share of gruntwork as well. Outsourcing that work costs tens of thousands per project, but a 2nd year masters student will do it for free because it's the only way to get their IDP hours to sit for the licensing exam.

There have been many discussions about this between architects and these days there are just some firms that have a reputation for churning through interns for free labor... Banning them is a tense subject for many, but many have taken the stance that after some period of months/years such practices are unethical. I can't recall the AIA's official stance.

[+] j_baker|14 years ago|reply
You mean a sizable subset of workers have decided they're worth their time. I think it's worth bringing up Maslowe's hierarchy of needs. If you can't afford to eat or pay rent, the experience you're getting is among the least of your concerns. If your food and rent situation is taken care of beforehand (and it's almost always done so by someone else), then you get to base your decision on whether or not the time is worth the experience.
[+] epsil|14 years ago|reply
Organisations have decided that this specific set of internships aren't worth paying a wage for. ... If you ban unpaid internships, companies won't offer the positions anymore.

That depends upon the demand curve for internship labor. If the demand is perfectly elastic, no internships will be offered at a higher wage; if the demand is somewhat elastic, less internships will be offered; and if the demand is inelastic, the number of offered internships will be unchanged.

What we are observing is a single data point: the intersection between the supply and demand curves. We cannot extrapolate the full curves from it. That organizations aren't paying for internships under present circumstances, doesn't mean that they wouldn't pay for internships under different circumstances. All it means is that the organizations have the upper hand in the transaction.

[+] eli_gottlieb|14 years ago|reply
By that logic, we should pass a law saying that you never have to pay employees if you don't want to. The number of jobs will simply explode!
[+] fierarul|14 years ago|reply
This is odd: just today I've posted our internship projects and they are all for paid positions.

And actually nowadays all students are forced by the University to have a short internship and it doesn't have to include a wage!

But I've decided to pay the students anyhow for 2 simple reasons:

* I want good students to apply. We are a small company.

* I want students to care more about the internship than just showing up and do the minimum.

[+] datr|14 years ago|reply
Are internships with The Atlantic paid or unpaid?

Edit: According to this article: http://www.dailyfinance.com/2010/04/06/atlantic-publisher-ta... all atlantic interns are paid.

[+] dummyaccount999|14 years ago|reply
I worked for Atlantic Media (this is a throwaway), and based on my experience there, that organization is harmed just as badly by its low-paid internships as it would be if they did not pay at all. A significant portion of the drudgery is performed by interns, and the company is very reluctant to hire new people. And they get away with it because of the bright-eyed college kids who will do this for low-pay. Few to none of the interns come back for a permanent position.

The corporate attitude at Atlantic Media is that people are generally expendable, and that the staff on-hand will pick up the slack when pissed off employees walk out the door. So most of the work there is performed by underpaid interns and underpaid, disgruntled employees.

[+] evoxed|14 years ago|reply
I have a friend who interned with them. They also give actual offers to distinguished candidates, which though it should be relatively standard is often not the case.
[+] sterling312|14 years ago|reply
Feel free to comment, I want to hear what other people think on this issue.

I think there is nothing inherently wrong with unpaid internships. If the market price for your work is low enough to only compensate experience gained, that's perfectly fine. What's wrong with the system are more generalize than that, and there are two problems that causes it. I would break it down to A) industrial organizational problem and B) market downturn (and to an extent upturn) + inefficiency and lagging effects.

Part A is more about the over abundance of certain firms in the market supply-demand that makes it very difficult to pay interns. Since I've never worked as a unpaid-intern before (it might happen soon though :/), correct me if I'm wrong, but most of them are either in marketing, legal assistant positions, or journalism. Marketing firms that do not offer paid internships are usually small agencies that are barely able to survive on their own; same thing is true with journalism; the whole legal market has wage flooring that artificially reduces the supply of laws and therefore law firms. It seems to me that these industries needs to better allocate and either become more competitive via innovation, and people going into those industry might want to reconsider their path.

Part B is more on the fact that labor market is inherently inefficient, and in a recession, it exaggerates the underlining problem in part A. This is why we are starting to see more unpaid internship instead of flat wage cuts.

[+] mayneack|14 years ago|reply
I was an unpaid intern at a lobbying office last summer and will be an unpaid congressional intern this summer (both DC). However, my college has given me a stipend (sort of merit based) so I can end up net positive on the summer.

I certainly wouldn't be able to afford this if it weren't for the stipend (though I'd probably do it for less and just break even or slightly negative). The biggest thing that I think is different for my intern experience from what I hear about the horrors about unpaid interns is that I get money like a paid intern, but have the expectations of an unpaid intern. The people I work for aren't paying me, so they can't expect too much labor out of me. As far as they're concerned, their payment is in experience, so I basically got free reign to do (or watch other people do) many things that might not be productive, but I found interesting. The anecdotal evidence of my friends with paid positions had to really earn their pay and don't have anywhere near the freedom that I did. It's plausible that I just found a good internship last summer (no fetching coffee), but I would say that I personally benefited from being paid by my college and not my employer.

[+] jhspaybar|14 years ago|reply
As a Junior who is going to be interning with undisclosed large internet company this summer, I think that much of the problem and reason for unpaid internships is that there are few jobs in the industry of choice for these interns. Being a double Major in Computer Science and Business Economics I can clearly see the economic forces at play(and really anyone should). These unpaid positions are springing up in industries that are often shrinking, or do not require overly talented skill sets to operate in. It's unfortunate for the workers, and I'd like to say they should be standing up and saying "no", but given the realities of their industries it may sadly be in their best interests to work for free.

Had they simply looked ahead when enrolling in college, they could have seen that majoring in something like journalism, while enjoyable would lead to brutal competition and low wages. This isn't a situation all interns face, when those in finance, computers, and a few other majors are capable of demanding $25-$35k of compensation for 3 months of a summer internship, it becomes clear this is problem affecting only some industries.

[+] fidrelity|14 years ago|reply
is this really an issue in the tech industry? I'm studying in austria, absolved an internship in germany, got paid quite well and so did all my fellow students (internships all over europe, US, australia).
[+] davedx|14 years ago|reply
Here in the Netherlands, from what I gather, it's the norm, yes. My gf did all of her internships for free, and the place I work at now pays something like 200 euros/month to their interns, which comprise almost half of our staff. They do pretty great work, too - definitely comparable with what a full-time employee produces.

Comparing it to the one internship I did while at university in the UK, where I worked at UBS for a summer and was paid enough to buy bottles of champagne at a bar on pay day to celebrate and go shopping at Harrods, it seems pretty unfair.

[+] _delirium|14 years ago|reply
Mainly an issue outside of tech, I believe. With the kinds of wages that Microsoft/Google/IBM/nVidia/Facebook/Oracle/etc. pay interns, it's going to be pretty difficult to recruit good interns with an offer of $0, unless circumstances are pretty unusual (unusual location, some kind of super-hot niche product, etc.).
[+] nickbarnwell|14 years ago|reply
In my experience - no. I have worked at startups ranging in size from 3 to 20 developers and funding from 25k incubator grants to multimillion dollar series A, and never have I gone unpaid. The two YC companies I applied to and received offers for this summer also offered pay, and Google, Microsoft, et al all have very competitive offers.
[+] Wilya|14 years ago|reply
I guess it's more a question of local tradition than a question of which industry you're in. As far as I can gather, in Sweden unpaid internship are the norm. In France, the situation is a bit more mixed. Some people pay well, others pay the strict legal minimum (0 or 400€, depending on the total duration).
[+] gyardley|14 years ago|reply
My most recent product management hire in NYC was doing unpaid internships for four different startups when I hired him.

I partially hired him for his drive and experience, so it's hard to argue he didn't benefit from the internships, but it still doesn't sit right with me.

[+] hej|14 years ago|reply
400€/month. Paid the rent and some living costs. Non-technical internship. The other place I interviewed at and was named the pay I would have gotten 300€/month or so. (That's in Germany, by the way.)

Both was ok for me. I was still a student, so paying a bit less than I needed to survive on that wage alone was ok. It shows appreciation of my work and trust in me.

[+] CPops|14 years ago|reply
In most cases, an unpaid internship is probably a bad idea. But individuals should be making that choice based on their unique set of circumstances and goals. Individuals should be free to make a choice whether or not the experience they gain, the connections they make, the resume blurb, and whether getting their foot in the door is worth more to them than their free labor. In most cases its probably a bad idea, but in some cases some people might see the opportunity as worth their effort.

IMO, the issue here is that labor laws prevent companies from offering unpaid internships that involve something that a business can actually benefit from or that can conceivably displace a paid employee. Ostensibly created to prevent exploitation, these labor laws actually create exploitation by effectively forcing an unpaid internship to be an exercise in busy work for any company that actually follows the law.

[+] mindcrime|14 years ago|reply
One premise of this article is faulty. They presume that you can only accept an unpaid internship if you're from a wealthy / privileged family or whatever. But that's not true. There's no particular reason you couldn't, say, work an unpaid internship 8 hours during the day, and work a second job at night, busing tables, washing dishes, working as a barista at Starbucks, or whatever. Plenty of people already work 2 jobs to make ends meet, so a college age kid with (hopefully) minimal living expenses could very likely manage this.

Note that I'm talking summer internship, when school is out, of course. I'm not proposing one should go to school, work a real job and work an internship.

This is also not to refute the idea that unpaid internships may be bad for other reasons... I'm just arguing against the idea that they're bad because they are only available to the children of the privileged.

[+] Tiktaalik|14 years ago|reply
Carrying on two jobs is technically possible but it would still be remarkably difficult and I think unrealistic to do this. The argument that the system overly benefits the wealthy is still valid.
[+] droithomme|14 years ago|reply
More interesting than the topic I think is their method of creating three daily articles. Ask for comments, sort the comments into pros and cons, then publish each on subsequent days with minimal commentary, and no pay offered to the people who actually crowdsourced the writing of the article.
[+] gm|14 years ago|reply
Who gives a crap? Honestly: If you do not like the idea of being an unpaid intern, then don't be one.

What's not a worthwhile opportunity for you might be an opportunity to someone else.

Am I missing something? Seems like unpaid internships affect me and my job/economy as much as someone else eating a donut affects my weight.

[+] j_baker|14 years ago|reply
Honestly, if you don't like reading articles that complain about interns who aren't paid, don't read them. What's not a worthwhile opportunity for you might be an opportunity for someone else.

In all seriousness, unpaid internships benefit no one other than the employer who gets free labor and the few students who have enough money to not care whether they get paid or not. They're not good for paid workers who now have to start salary negotiations with the other side upset that they even have to pay them at all. Nor are they good for the economy, which needs more consumer demand. And they certainly aren't good for students who are well-qualified, but can't afford to not get a pay check.

Help me understand how unpaid internships aren't a mechanism to keep the rich rich and to keep the poor from becoming productive members of society. Seriously.

[+] sliverstorm|14 years ago|reply
The main "how this affects me" argument is establishing a culture of unpaid interns encourages the practice, which will snowball to the point of virtually requiring X years as an unpaid intern to get a job, anywhere.

Of course this doesn't affect senior employees with twenty years of experience under their belts, but that doesn't mean it isn't a concern for the greater good.

[+] eli_gottlieb|14 years ago|reply
Who gives a crap? Honestly: If you do not like the idea of being an unpaid intern, then don't be one.

Unpaid internships undermine the entire legal and moral principle that workers are supposed to be paid. There's a reason we have minimum-wage laws, and of course, anti-slavery laws.

[+] drumdance|14 years ago|reply
It's not the idea that offends, it's the practicality. I had to turn down an unpaid internship in my early twenties because I couldn't make ends meet otherwise. I ended up going into a completely different field. I'm happy with my current profession, but I occasionally wonder "what if..."
[+] codexon|14 years ago|reply
If Zynga figures they can get free labor, your salary may take a drop, or at least stagnate.