Undergraduate Internships, Degree Completion, and the Matthew Effect

Abstract

Internships—short-term placements where students work while enrolled in college—are widespread among American undergraduates. However, researchers disagree whether internships are valuable forms of skill acquisition or conversely offer false promises and are exploitative. This paper evaluates a large multi-campus internship program with a paid community service focus, examining academic spillovers such as degree completion. We find positive academic spillovers across students, but also observe a “Matthew Effect:” The largest benefits occur for academically and socioeconomically marginalized undergraduates, those who are less likely to undertake an internship. The current tendency to use internships as a reward for the academically deserving therefore contrasts with an efficiency perspective that would target those who gain the largest benefit.