Submission + - Unpaid interns have lower pay, less job satisfaction years later
Almost every graduate taking an unpaid internship can expect to be worse off three years later than if they had gone straight into work.
That is the shock finding of the first survey of its kind of the career trajectories of tens of thousands of students over a six-year period.
The study, conducted by the Institute for Social and Economic Research at the University of Essex, reveals that, three-and-a-half years after graduating, former interns face a salary penalty of approximately £3,500, compared with those who went straight into paid work, and £1,500 compared with those who went into further study.
Unpaid internships are a possible indicator of a large oversupply of workers to jobs available, and downward pressure on pay, especially if you have people who are willing to work for free in multiple internships "just to get a foot in the door."
Worse, they don't often achieve their goal of gaining paid employment in the field you choose, and if you do, you're less likely to be satisfied or promoted.
Dr Angus Holford, who carried out the study, said it showed that many graduates who took internships would end up disappointed if they thought it would put them on the path to success in a favoured career.
"I expect some people will find an internship that enables them to do the job they really want to do and that will have the big labour-market return but, on average, an internship you take won’t lead directly to a job in the profession you really wanted or the profession you did the internship in."
The study also found that those who took internships were less likely to go on to professional or managerial roles or be satisfied with their career compared with those who had gone straight into work.
Compared with those who went onto further study, an internship reduced the probability of a graduate working in a professional or managerial role, or being very satisfied with their career, by 15 and 8.8 percentage points respectively.