There Ain't No Such Thing as a Free Laborer?
This morning, Greg Mankiw posted a very interesting article on his blog from The New York Times. The article makes a good point on the minimum wage requirements for interns working for no pay. This is a good thing for college students like us because we are trying to find pay in places that also offer real-life experiences for the work place. Under the law, companies are required to pay interns the minimum wage except under special circumstances where the companies comply with the six federal legal criteria the article references. But for every internship that will be paid, there is no doubt some will be cut from companies. They simply can't afford to start paying people that don't contribute in the same way the experienced employees do. It is much like adding more labor to our models but not increasing output. Although the lawmakers might think this is a good idea, there is good reason to think it will actually hurt students looking for internships because there will be fewer available.