IDEAS home Printed from https://ideas.repec.org/a/kap/decono/v172y2024i1d10.1007_s10645-023-09432-0.html
   My bibliography  Save this article

Internships, Hiring Outcomes and Underlying Mechanisms: A Stated Preferences Experiment

Author

Listed:
  • Ilse Tobback

    (KU Leuven)

  • Dieter Verhaest

    (KU Leuven)

  • Stijn Baert

    (Ghent University)

Abstract

We identify the causal effects of three types of internships (mandatory intra-curricular, voluntary intra-curricular, and voluntary extra-curricular) among university graduates on job interview and hiring chances, and explore the mechanisms underlying these effects. To this end, we perform a vignette experiment among HR professionals in Belgium. Our results indicate that internships improve one’s job interview and hiring chances, with voluntary extra-curricular internships having the strongest effect. With respect to the mechanisms, we find that internships improve employers’ perceptions about the job seekers’ skills acquired during the educational career, their pre-existing abilities and motivations, and their knowledge of the job content and working conditions. The first two types of perceptions are also found to be strong predictors of the hiring outcomes. The effects of internships on hiring chances are not found to be reduced or reinforced by the presence of other work experiences (student work, volunteering).

Suggested Citation

  • Ilse Tobback & Dieter Verhaest & Stijn Baert, 2024. "Internships, Hiring Outcomes and Underlying Mechanisms: A Stated Preferences Experiment," De Economist, Springer, vol. 172(1), pages 25-48, March.
    • Handle: RePEc:kap:decono:v:172:y:2024:i:1:d:10.1007_s10645-023-09432-0
    DOI: 10.1007/s10645-023-09432-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10645-023-09432-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10645-023-09432-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stijn Baert & Dieter Verhaest, 2021. "Work Hard or Play Hard? Degree Class, Student Leadership and Employment Opportunities," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(4), pages 1024-1047, August.
    2. Nunley, John M. & Pugh, Adam & Romero, Nicholas & Seals, R. Alan, 2016. "College major, internship experience, and employment opportunities: Estimates from a résumé audit," Labour Economics, Elsevier, vol. 38(C), pages 37-46.
    3. Guido Cozzi & Noemi Mantovan & Robert M. Sauer, 2017. "Does it Pay to Work for Free? Negative Selection and the Wage Returns to Volunteer Experience," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(6), pages 1018-1045, December.
    4. Michael Spence, 2002. "Signaling in Retrospect and the Informational Structure of Markets," American Economic Review, American Economic Association, vol. 92(3), pages 434-459, June.
    5. Van Belle, Eva & Caers, Ralf & Cuypers, Laure & De Couck, Marijke & Neyt, Brecht & Van Borm, Hannah & Baert, Stijn, 2020. "What do student jobs on graduate CVs signal to employers?," Economics of Education Review, Elsevier, vol. 75(C).
    6. Jaeger, David A. & Nunley, John M. & Seals, R. Alan & Shandra, Carrie L. & Wilbrandt, Eric J., 2023. "The demand for interns," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 372-390.
    7. Humburg, Martin & van der Velden, Rolf, 2015. "Skills and the graduate recruitment process: Evidence from two discrete choice experiments," Economics of Education Review, Elsevier, vol. 49(C), pages 24-41.
    8. Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
    9. Cobb-Clark, Deborah A. & Schurer, Stefanie, 2012. "The stability of big-five personality traits," Economics Letters, Elsevier, vol. 115(1), pages 11-15.
    10. Georg Graetz, 2021. "On the interpretation of diploma wage effects estimated by regression discontinuity designs," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(1), pages 228-258, February.
    11. Stiglitz, Joseph E, 1975. "The Theory of "Screening," Education, and the Distribution of Income," American Economic Review, American Economic Association, vol. 65(3), pages 283-300, June.
    12. Baert, By Stijn & Neyt, Brecht & Siedler, Thomas & Tobback, Ilse & Verhaest, Dieter, 2021. "Student internships and employment opportunities after graduation: A field experiment," Economics of Education Review, Elsevier, vol. 83(C).
    13. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    14. Paul Ryan, 2001. "The School-to-Work Transition: A Cross-National Perspective," Journal of Economic Literature, American Economic Association, vol. 39(1), pages 34-92, March.
    15. By Stijn Baert & Brecht Neyt & Eddy Omey & Dieter Verhaest, 2022. "Student work during secondary education, educational achievement, and later employment: a dynamic approach," Empirical Economics, Springer, vol. 63(3), pages 1605-1635, September.
    16. Gregg, Paul & Tominey, Emma, 2005. "The wage scar from male youth unemployment," Labour Economics, Elsevier, vol. 12(4), pages 487-509, August.
    17. Dieter Verhaest & Stijn Baert, 2018. "The effects of workplace learning in higher education on employment and match quality: is there an early-career trade-off?," Empirical Economics, Springer, vol. 55(3), pages 1229-1270, November.
    18. Brecht Neyt & Dieter Verhaest & Lorenzo Navarini & Stijn Baert, 2022. "The Impact of Internship Experience on Schooling and Labour Market Outcomes [Secondary Vocational Education and the Transition from School to Work]," CESifo Economic Studies, CESifo Group, vol. 68(2), pages 127-154.
    19. Nick Hanley & Susana Mourato & Robert E. Wright, 2001. "Choice Modelling Approaches: A Superior Alternative for Environmental Valuatioin?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-462, July.
    20. Shushanik Margaryan & Nils Saniter & Mathias Schumann & Thomas Siedler, 2022. "Do Internships Pay Off? The Effects of Student Internships on Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 57(4), pages 1242-1275.
    21. Joseph Stiglitz & Andrew Weiss, 1990. "Sorting Out the Differences Between Signaling and Screening Models," NBER Technical Working Papers 0093, National Bureau of Economic Research, Inc.
    22. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66(4), pages 281-281.
    23. Ilse Tobback & Dieter Verhaest & Stijn Baert, 2020. "Student Access to Apprenticeships: Evidence from a Vignette Experiment," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(3), pages 435-465, July.
    24. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Piopiunik, Marc & Schwerdt, Guido & Simon, Lisa & Woessmann, Ludger, 2020. "Skills, signals, and employability: An experimental investigation," European Economic Review, Elsevier, vol. 123(C).
    2. Thomas Bolli & Katherine Caves & Maria Esther Oswald-Egg, 2021. "Valuable Experience: How University Internships Affect Graduates’ Income," Research in Higher Education, Springer;Association for Institutional Research, vol. 62(8), pages 1198-1247, December.
    3. Maria Esther Oswald-Egg & Ursula Renold, 2019. "No Experience, No Employment: The Effect of Vocational Education and Training Work Experience on Labour Market Outcomes after Higher Education," KOF Working papers 19-469, KOF Swiss Economic Institute, ETH Zurich.
    4. Oswald-Egg, Maria Esther & Renold, Ursula, 2021. "No experience, no employment: The effect of vocational education and training work experience on labour market outcomes after higher education," Economics of Education Review, Elsevier, vol. 80(C).
    5. Baert, By Stijn & Neyt, Brecht & Siedler, Thomas & Tobback, Ilse & Verhaest, Dieter, 2021. "Student internships and employment opportunities after graduation: A field experiment," Economics of Education Review, Elsevier, vol. 83(C).
    6. Brecht Neyt & Dieter Verhaest & Stijn Baert, 2019. "The Impact of Internship Experience During Secondary Education on Schooling and Labour Market Outcomes," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 19/980, Ghent University, Faculty of Economics and Business Administration.
    7. Schurer, Stefanie & de New, Sonja C. & Leung, Felix, 2015. "Do Universities Shape Their Students' Personality?," IZA Discussion Papers 8873, Institute of Labor Economics (IZA).
    8. Theodore Koutmeridis, 2013. "The Market for "Rough Diamonds": Information, Finance and Wage Inequality," CDMA Working Paper Series 201307, Centre for Dynamic Macroeconomic Analysis, revised 14 Oct 2013.
    9. Jorge M. Streb, 2006. "Job market signals and signs," CEMA Working Papers: Serie Documentos de Trabajo. 326, Universidad del CEMA.
    10. John H Goldthorpe, 2014. "The role of education in intergenerational social mobility: Problems from empirical research in sociology and some theoretical pointers from economics," Rationality and Society, , vol. 26(3), pages 265-289, August.
    11. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    12. Alla Kirova, 2011. "Evolution of the Human Capital Doctrine," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 94-131.
    13. Lisa Simon, 2019. "Microeconometric Analyses on Determinants of Individual Labour Market Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 83.
    14. Inmaculada Garc�a-Mainar & V�ctor M. Montuenga-G�mez, 2017. "Subjective educational mismatch and signalling in Spain," Documentos de Trabajo dt2017-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    15. Tom Lane & Minghai Zhou, 2022. "Failure of unravelling theory? A natural field experiment on voluntary quality disclosure," Discussion Papers 2022-17, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    16. Shushanik Margaryan & Nils Saniter & Mathias Schumann & Thomas Siedler, 2022. "Do Internships Pay Off? The Effects of Student Internships on Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 57(4), pages 1242-1275.
    17. Nick Huntington-Klein, 2021. "Human capital versus signaling is empirically unresolvable," Empirical Economics, Springer, vol. 60(5), pages 2499-2531, May.
    18. Graetz, Georg, 2023. "Imperfect Signals," IZA Discussion Papers 16104, Institute of Labor Economics (IZA).
    19. Möller Joachim & Umkehrer Matthias, 2015. "Are there Long-Term Earnings Scars from Youth Unemployment in Germany?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(4-5), pages 474-498, August.
    20. Eliasson, Kent, 2006. "The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence," Umeå Economic Studies 691, Umeå University, Department of Economics.
    21. Il-Horn Hann & Jeffrey A. Roberts & Sandra A. Slaughter, 2013. "All Are Not Equal: An Examination of the Economic Returns to Different Forms of Participation in Open Source Software Communities," Information Systems Research, INFORMS, vol. 24(3), pages 520-538, September.

    More about this item

    Keywords

    Internships; Work experience; Tertiary education; Job opportunities; Employability; Human capital; Signalling; Matching;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:decono:v:172:y:2024:i:1:d:10.1007_s10645-023-09432-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.