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I think this pipeline already exists via open source software. Unskilled people are by default allowed to try contributing. As soon as they are actually capable of doing so, they can move up the ranks by getting hired somewhere.

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"Work for free until we decide you're worth being paid."

In most cases, I'm firmly opposed to this. For example, I've known several people in psychology and social services careers where they essentially worked unpaid for years before qualifying for their licence. I think that's absurd because it forces you into creating value for others without receiving any of that value back.

However, I'd argue that unpaid contribution to open source software as a way to build reputation is not absurd, because the value you are creating is still available for you to use and benefit from. Additionally, you are free to work on anything you like - something you can't do at an organization which is compelling you to work for free.

i.e. an internship

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