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Purpose

Greece has the highest youth unemployment rate in the European Union. Even though it is clear that persistent unemployment requires bold measures so as to engage young educated Greeks in the labour market, there is no coherent policy at present targeting that population group, especially university students. This paper explores university student internship as a new labour market institution that has the potential of enhancing youth employability in Greece.

Design/methodology/approach

In order to answer the main research questions, an explorative case study methodology was chosen. This paper was based on a series of semi‐structured face‐to‐face interviews whose aim was to explore student perceptions of the effects of a current co‐operative education programme launched by the University of Macedonia in Greece.

Findings

The findings of the empirical research indicate that co‐operative education can be used as a vehicle for linking theoretical knowledge and practice, and enhancing student employability upon graduation.

Research limitations/implications

This is an exploratory study that seeks to analyse a limited number of internships within a university. A large‐scale national survey involving students from various academic disciplines and other universities would result in a more comprehensive assessment of the effectiveness of internships in Greece.

Practical implications

This study has shown that a work‐study programme promoting work opportunities for Greek youth seems to have great value for student employability.

Originality/value

Given the dearth of empirical research on youth unemployment in Greece, this study contributes to debates in the wider academic community on the issue of how to formulate and implement active labour market policies for young, well‐educated Greeks.

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