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comment by b_b
b_b  ·  3887 days ago  ·  link  ·    ·  parent  ·  post: An interesting question

This is why I'm generally against unpaid internships, especially those that don't seem like education is their priority. I find the situation where one has to live and work unpaid for months or even a year just to have a chance at getting gainful employment to be coercive. We all, left or right, seem to agree that coercion is wrong, but we seem to disagree as to what it consists in. I would say that any market that demands unpaid labor is coercive. One can say that there are other industries that don't demand such situations, but then the free marketer is going against his own assumption that a laborer will find the thing that (s)he is good at and fill that niche. It appears to me to be an undue barrier to entry that automatically excludes less well off workers.





wasoxygen  ·  3311 days ago  ·  link  ·  

This was an unusual paragraph in which I disagreed with every sentence. I hope you won't mind if I respond point by point.

    This is why I'm generally against unpaid internships, especially those that don't seem like education is their priority.

Do you not trust the worker to determine what benefit they get from a working arrangement, and whether it is worthwhile? Isn't volunteering a laudable form of unpaid work that can provide benefits unrelated to education?

    I find the situation where one has to live and work unpaid for months or even a year just to have a chance at getting gainful employment to be coercive.

The cost of rent or food might compel someone to work more or accept comparatively less advantageous working arrangements, but most people do not consider such facts of life to be coercive. Who is doing the coercing? Many people feel compelled to spend many years and a lot of money on education so they can earn a better living in the future. Are they also victims of coercion?

    We all, left or right, seem to agree that coercion is wrong, but we seem to disagree as to what it consists in.

I have tried to define the word, but have not seen you do the same. In particular, I would like you to explain how someone who voluntarily accepts a working arrangement, and is free to abandon it the moment any better alternative becomes available, is a victim of coercion. Who is doing the coercing?

    I would say that any market that demands unpaid labor is coercive.

The "market" does not demand anything; the market is a place where people meet to offer and make exchanges. "Demand" in an economic sense is nothing more than being able to say what you are willing to exchange for something. Starbucks demands $2.40 in exchange for 16 ounces of coffee. Some people demand 16 ounces of coffee in exchange for $2.40, and a deal is made. Some people don't want coffee that much, or already have plenty of cheap coffee or tea, so they "demand" a price of zero. Nobody is under any obligation to give them free coffee.

    One can say that there are other industries that don't demand such situations, but then the free marketer is going against his own assumption that a laborer will find the thing that (s)he is good at and fill that niche.

No one tells the journalism major to pass on the internship at Condé Nast and work as an astrophysicist instead, since it pays better. The assumption is that the laborer will try to find best opportunity available, given their skill set and other realities.

    It appears to me to be an undue barrier to entry that automatically excludes less well off workers.

Your position suggests that we prohibit people from considering one possible means for gaining work experience, without considering whether they have a better alternative. The worker can already choose to decline an internship if they have a better option. If they choose to accept it, and you step and prevent the arrangement, your behavior is clearly coercive and, in my view, a barrier to entry that particularly applies to the less well off who have fewer alternatives.

b_b  ·  3311 days ago  ·  link  ·  

Frankly, the more I've read about unpaid internships, the less clear I am on my stance on them. I wonder way more why people take them rather then why they exist (which is obviously because of the former). The fact that so many unpaid internships exist is proof that there is a supply problem in a number of fields. I won't back off my statement that unpaid internships are huge barriers to entry, but I'll qualify it to say that were I running a business, I wouldn't personally offer unpaid internships. The evidence that I read seems to suggest that offering a low-to-fair wage for these jobs actually attracts higher quality, more diverse groups of candidates than unpaid positions, and that the interns are more likely to stay on with your company after the fact. What's the point of training a worker to work for someone else?

Like with may subjects, the older I get, the less I feel I understand them. I think there's a disconnect between entry level workers' expectations and reality. I think that if more kids got themselves educated, then very few would take a job with a media company that offered to pay them 0. I think the situation I find unjust is that it appears that taking an unpaid internship often doesn't increase one's job prospects, even though they're marketed that way. As is often the case, the more the worker can rebalance the information scales in their favor, the better. Sadly, educating oneself is not often a priority for too many people.

Business owners have an obligation to follow the law, and currently the law says that for a job that is not mostly educational in nature, the minimum wage applies. Seems like a fair compromise. Sorry I can't be more argumentative.

wasoxygen  ·  3310 days ago  ·  link  ·  

    were I running a business, I wouldn't personally offer unpaid internships

"Hi, Mr. b_b, I am not old enough to legally work, but I would love to pick up balls on your golf course and clean carts and just hang around and learn about the golf business because I dream of owning my own course one day. Also, someone told me that 'The ability to make decisions for oneself is among the most important things that makes us human' and I decided that staying home and watching TV is a waste of time."

"Scram, kid."

    The evidence that I read seems to suggest that offering a low-to-fair wage for these jobs actually attracts higher quality, more diverse groups of candidates than unpaid positions

Of course offering higher wages attracts higher quality workers. That's the whole point. You get what you pay for, and better-qualified workers will compete for richer compensation, pushing others out. I thought you were worried about "less well off workers"?

"The chief practical negative of minimum wage is increased unemployment among the most vulnerable workers, who would most benefit from greater access to employment." The numbers have improved since the last time I checked, but the pattern is still the same:

    The number of unemployed youth was 2.8 million in July 2015, down from 3.4 million a year earlier. The youth unemployment rate was 12.2 percent in July 2015, 2.1 percentage points less than a year before. Among the major demographic groups, July unemployment rates were lower than the prior year for young men (12.7 percent), women (11.7 percent), whites (10.3 percent), blacks (20.7 percent), and Hispanics (12.7 percent). The youth jobless rate changed little for Asians (10.7 percent).

    it appears that taking an unpaid internship often doesn't increase one's job prospects

Compared to what? If you are saying one's future job prospects would increase more if one got a paid position instead of taking an internship, I think that's reasonable.

If you are saying one's future job prospects would increase more if one remained unemployed, I doubt it.

If an unemployed person has to choose between an unpaid internship and a similar but paid position, I don't think we need FLSA to nudge them in the right direction.

b_b  ·  3309 days ago  ·  link  ·  

    Compared to what? If you are saying one's future job prospects would increase more if one got a paid position instead of taking an internship, I think that's reasonable.

    If you are saying one's future job prospects would increase more if one remained unemployed, I doubt it.

The only large survey I'm aware of (and I'm not an expert here by any stretch) indicates that there isn't a statistically significant difference in finding a job after college between those who have had unpaid internships and those with no work experience. This itself isn't an argument against not paying interns, but it is an argument to young people about not subjecting themselves to them.

The potential caveat of that study is that they don't show the numbers by field. It could be that unpaid positions are more likely to be offered in field with high unemployment to being with, which supply and demand should dictate. In engineering, where I had my college internships, unpaid positions are unheard of. I got $14 an hour as an intern in 2004 at Dow Automotive, and my classmates told me I was getting fucked.

wasoxygen  ·  3307 days ago  ·  link  ·  

    there isn't a statistically significant difference

Four months after that article appeared, the National Association of Colleges and Employers responded to "misapplication" of their survey conclusions, emphasizing that they only looked at intern-to-hire data prior to graduation, not after, and (as usual) more research and analysis were needed. In particular, they observed "that NACE does not have sufficient information about the individual students and their job searches to adequately explain" why the unpaid interns did not exhibit the same improvement in intern-to-hire statistics.

The controls for gender, ethnicity, and academic major did not clear it up, and they do not know if "something distinctive about the places and kinds of jobs for which students with unpaid internships applied (e.g. not-for-profit vs. for profit organizations)" might explain the difference.

There is a lot of variation in the places and kinds of jobs that offer unpaid internships, according to an informative report from Intern Bridge, another source for the Atlantic article.

Some highlights:

• Women are more likely to take unpaid internships (77%) "because they tend to be more involved in social justice, environmental, and social service issues."

• Students with family income below $80,000 participated in unpaid internships at 46% compared to 40% for students with family income above $80,000. (While some complain that unpaid internships exploit the poor and give little benefit, others complain that only wealthy people can afford to consider them, so the experience and networking benefits of unpaid internships go to them.)

• Unpaid internships are more common at non-profits (57% of internships unpaid) and government (48%), while for-profit companies have 34% internships unpaid.

• Smaller firms have higher levels of unpaid internships (55% for those with fewer than 100 employees). The largest companies, with over 5000 employees, offered fewer than 20% of their internships as unpaid.

• The largest proportions of unpaid internships were found in government (here stated as 54%), health (62%), non-profits (63%), and arts/entertainment/broadcasting (68%), while companies in the utilities, transportation and manufacturing sectors provide less than 17% of their internships unpaid.

NACE concludes that "Unpaid internships can be legitimate, valuable extensions of classroom learning, if properly constructed."

Thanks for keeping up with the conversation. I am not as clear on the value of unpaid internships as I may sound, arguing for their virtues. Maybe they are not that helpful. What I am unclear on is the confidence with which some people condemn voluntary working relationships that are not highly paid (in salary). You are one of very few people I have seen acknowledge the benefits that accrue to really desperate people who accept working conditions that most Americans would consider undignified and beneath them, and I think that is an important perspective to include in the it's-not-perfect-so-ban-it discussion.