epsil's comments

epsil | 14 years ago | on: Unpaid Internships: Bad for Students, Bad for Workers, Bad for Society

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.

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