Abstract

There has been an increased concern about the returns of a college education. This thesis looks to analyze if internships can fulfill the once sought after college wage premium. I develop a theory that is rooted in signaling theory, human capital theory, and social capital that explains why employers value an internship experience when facing uncertainty in the hiring process. The literature references the same theories an applies them to returns to education and the value that internships can provide, but do not combine the two subjects over time. My research bridges the gap between the returns of higher education and internships and the time component. I use two longitudinal, individual level datasets that follow eighth grade students through high school and years after. Using economic regression models, I examine the relationships between earnings and internship experience over time. My results reveal that internship experiences provide a significant increase in earnings and the returns to an internship have grown more over time in relation to the college wage premium.

Advisor

Long, Melanie

Department

Economics

Disciplines

Education Economics

Keywords

internships, earnings, college, wage premium, signaling, human capital, social capital

Publication Date

2025

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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