The Gender Pay Gap in University Student Internships

Abstract 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.