Calling Bullshit on Unpaid Interships

With most of my bosses, I had the following deal: "I have no experience, so every task lasts as long as I think I need. You pay a low wage, so if you hit one of the points where I am actually experienced: you make a good cut. If you assign me to tasks where I have to learn everything: you make a bad cut." It worked great, if you know the line where you shouldn't force those terms.

Its a business and working for free is harmful to everyone who wants to make a living from it.

But if someone fresh grad is duped into believing doing unpaid work will get him something else then its bad.

One trend that really scares me is that there are some "career experts" whom I interact with regularly who offer their own unpaid virtual internships (I've seen lots of other internships like this, but the fact that career experts who are supposed to help interns are offering these really blows my mind). These are people who don't have the ability to offer many of the benefits that do come with an unpaid internship such as making connections, learning what it's like to work in a real office, having a recognizable name on your resume, etc.

Another trend that scares me is that we're seeing more and more internships auctioned off in charity auctions. Rich parents actually pay for their kids to get some experience.

Unfortunately, interns aren't going to be the ones to stop this trend. Unpaid interns do benefit from their internships. They mostly accept it as something that they have to do, and they know that if they refuse to take an unpaid internship, there are thousands of other students who will snap up the opportunity.

Change is either going to have to come from employers or the government. I strongly believe that offering paid internships is more favorable to employers because they get better quality interns who are more motivated, and the employer has a stronger incentive to use the intern's time well.

Here in the U.S. there are already laws against unpaid internships. I wrote an article on it here: http://www.onedayoneinternship.com/blog/are-unpaid-internshi...

There's actually an excellent and fair standard for determining when an unpaid internship should be allowed; however, I've never heard of an employer's being prosecuted under the Fair Labor Standards Act for having unpaid interns. And if the law were to start to be enforced, I'm not sure the outcome would benefit students in the short-term. There would be a lot fewer opportunities as many employers would get rid of their internship programs. This would result in even more competition for what paid opportunities were left.

I really hate unpaid internships, but I still haven't figured out what it's going to take to make them a thing of the past. They've become an essential part of the transition from education to employment, and messing around with that in a time when really talented grads are struggling to land jobs probably isn't a good idea. We may have to wait until the economy really heats up again.

Along these lines, it doesn't fit to equate unpaid internships to serfdom. Serfdom involves effectively permanent, near total servitude to a landowner for most aspects of life. You don't travel. You don't get educated. You don't have upside. You can't escape. You're screwed. An unpaid internship is not at all like this. Unpaid internships are not "essentially a form of serfdom".

If your labour has value then you can find work that pays you a rate for it (except for minimum wage - more about this shortly). You have the opportunity to expose yourself to experience by doing internships. If you don't have anything better to be doing, then it's a win-win situation for you and the person you're doing internship.

When I was young I worked in a computer assembly shop for basically no money. In the course of this work I plugged a power cable into a motherboard and fried it. I probably rubbed customers up the wrong way, and certainly did dumb things. My labour was worth less than nothing, and I was lucky to have the opportunity to be allowed near the place or customers.

As I became valuable I struck a private agreement with the owner and spent a summer working full-time, for which I was paid one gravis ultrasound ACE. I think I ended up better on the deal than the owner, but it was a close-run thing.

Another time I was contracted to do a job for an oil company. It took me a month to do something that would now take me a day, and the end result was so bad that they got no return on investment of the the AUD 300 they paid me for the job. Note that in the case of the oil company work, I already had most of a computer science degree, and so was more qualified than the average kind of person who lives on minimum wage and still near-worthless.

After spending some time working to build up my skills, I'm now happy with my career. I wouldn't be here except for working in situations where I was earning less than minimum wage, often with people giving my low money on the offchance I might not be incompetent.

The minimum wage is a horrible stain on a free society. It traps people with low skills out of work and cements them into an underclass that's much more difficult to break out of. It prevents business that are operating on the edge from continuing to operate. It's a classic example of do-gooders riding in and creating damage.

There is an argument in favour of minimum wage, and it's this: some people are too incompetent to be capable of standing up for themselves, and these people would be easy to take advantage of for malicious bosses, of which there are no shortage. The minimum wage is a blunt force mechanism that aims (and fails) to protect this set of people. The reason it fails is that in protecting low-wage employed people, it locks out people who are in a worse situation - unempployed.

It's a ridiculous solution that hurts the people it claims to represent. There are much better avenues that would be cheaper and have more positive effect on people: basic risk, valuation and business skills being taught in early high-school, television campaigns that encourage people to think about how their labour is used, what they could do to make themselves marketable. Mechanisms to get people speaking English more effectively. Lower taxation. Effective technical colleges.

The minimum wage system is a mechanism designed by the elite to allow that elite to paper over things and sleep at night pretending they're doing the right thing. It hurts the people it claims to protect.