Religion and Employment in India

Over the last couple of decades, the Indian economy has experienced substantial growth rates, and India aims to be an economic superpower of the future. However, the translation of this growth into improved employment and incomes for Indians has been highly uneven across various social categories of gender, caste, and religion. While there has been considerable work on inequalities on gender and caste lines, in keeping with broader interest in the economics of religion, the study of differences in outcomes across religious groups seems to be comparatively less developed. Specifically, this chapter aims to redress that gap by understanding how religious identities affect the labour market outcomes of individuals in India today, a topic which garnered attention in the Sachar Committee Report in 2007. The data indicate that overall, India’s Hindus have better employment prospects than India’s Muslims. Although Muslim men are more likely to be employed than Hindu men, the order is the reverse for women. The resulting picture that the chapter paints is of concern to those interested in the economic well-being of Indian communities as well as those who are interested in the economics of social inclusion.