Purpose
This paper aims to evaluate internships in terms of governance structures. Internships are being promoted as a European Union policy lever to address high youth unemployment. However, concerns exist that internships often have few developmental opportunities and poor employment outcomes, something this conceptual paper examines.

Design/methodology/approach
The authors develop a conceptual framework for distinguishing between different types of internships based on “dimensions of governance” (contract, agreed duration and partnership). A distinction is made between “open market”, “educational” and “active labour market policy” internships, drawing on examples and evidence from Spain and Portugal.

Findings
The authors argue that “governed” internships, linked to educational programmes or genuine active labour market policies, are much more likely to have beneficial outcomes than “open market internships”. This is because they provide the positive governance conditions relating to contract, duration and partnership arrangements under which employers, interns and third parties understand how they can benefit from the internship and what their responsibilities are.

Research limitations/implications
The strength of the paper lies in outlining an analytical framework for future research. The evidence presented from Spain and Portugal provides support for the conceptual framework; future comparative internship research should further test the propositions made across a range of countries and contexts.

Social implications
By increasing understanding of internship governance, employers, policymakers and educationalists will be in a better position to design successful internships.

Originality/value
The paper broadens the focus beyond educational internships alone and proposes a conceptual framework for future research.

Current levels of youth unemployment need to be understood in the context of increased labor market flexibility, an expansion of higher education, youth migration, and family legacies of long-term unemployment. Compared with previous recessions, European-wide policies and investments have significantly increased with attempts to support national policies. By mapping these developments and debates, we illustrate the different factors shaping the future of European labor markets. We argue that understanding youth unemployment requires a holistic approach that combines an analysis of changes in the economic sphere around labor market flexibility, skills attainment, and employer demand, as well as understanding the impact of family legacies affecting increasingly polarized trajectories for young people today. The success of EU policy initiatives and investments will be shaped by the ability of national actors to implement these effectively.