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Internships are an important and often mandatory part of academic education. They offer valuable insights into the labor market but can also expose students to negative aspects of the working world, such as gender pay disparities. We provide first evidence of a gender pay gap in mandatory internships, with women earning up to 21 % less per hour than men. This gap is not due to women choosing higher-quality internships over higher pay. Factors such as field of study, risk aversion, competitiveness, the focus of the internship, and firm characteristics account for a large share of the gap. Further analyses show that the internship pay gap is broadly similar to the wage gap at labor market entry among graduates. We discuss potential mechanisms through which the internship pay gap may be related to the entry wage gap.
Internships are an important and often mandatory part of academic education. They offer valuable insights into the labor market but can also expose students to negative aspects of the working world, such as gender pay disparities. Our paper provides first evidence of a gender pay gap in mandatory internships, with women earning up to 7% less per hour than men. Notably, this gap is not due to women choosing higher-quality internships over higher pay. Further analyses show that the internship pay gap is similar in magnitude to the labor market entry wage gap among graduates. We discuss potential mechanisms by which the internship pay gap may contribute to the graduation wage gap and present empirical evidence to support this.
