Caste 'continues to influence' hiring, wages, migration patterns in India

By Rajiv Shah 

A recent academic study has highlighted how caste and social identity continue to shape employment opportunities, wages and access to secure livelihoods in India, even as the country projects itself as one of the world’s fastest-growing economies. The findings, published in the 2026 Springer volume Unequal Opportunities: An Analysis of Inequalities in Employment Opportunities Among Different Social Groups in Labor Markets of India, argue that structural discrimination remains embedded in both formal and informal labour markets. 

The study, authored by Manjula Laxman of Gujarat Vidyapith and Rashmika Dabhi, states that Scheduled Castes (SCs), Scheduled Tribes (STs) and Other Backward Classes (OBCs) continue to face exclusion in hiring, wages, occupational mobility and access to capital despite constitutional safeguards and affirmative action policies. 

The authors note that many of the datasets used in the study — including Census 2011, Socio-Economic Caste Census 2011, Employment and Unemployment Survey 2013-14 and Economic Census 2015 — are more than a decade old because updated official caste-wise labour and socioeconomic data remain unavailable in the public domain. However, these figures remain relevant as more recent studies and labour trends continue to show persistent inequalities. 

Citing the Multidimensional Poverty Index Report 2021, the study notes that five out of every six multidimensionally poor people in India belong to SC, ST or OBC households. ST communities account for more than 50% of the multidimensionally poor population, followed by SCs at 33.3% and OBCs at 27.2%. 

The report points out that more than 90% of India’s workforce is employed in the informal or unorganised sector. Referring to e-Shram portal data, it states that over 27 crore workers are registered on the platform and nearly 74% of them belong to SC, ST and OBC categories. Most earn ₹10,000 or less per month. 

Using Labour Bureau data from 2013-14, the study says the labour force participation rate among ST communities was the highest at 60.8%, followed by SCs and OBCs. Yet, the authors argue that higher participation does not indicate better employment conditions, since a large proportion of SC and ST workers remain concentrated in insecure and low-paying informal jobs. Only 8% of ST workers, the report says, were employed in regular salaried jobs offering social security and relatively stable incomes. 

The study also draws attention to discrimination during recruitment processes. Referring to survey data compiled by labour economist R. Mamgain, it says candidates from marginalised communities frequently faced questions unrelated to their qualifications, including inquiries about caste, religion, family background and residential locality. According to the survey cited in the report, 41.3% of SC candidates who were selected for jobs reported being offered lower salaries than advertised. About 10.5% of SC candidates, 12.7% of ST candidates and 13.3% of OBC candidates said they were asked intimidating questions related to caste or religion during interviews. 

The report states that caste continues to influence ownership patterns in business and entrepreneurship as well. Data drawn from Economic Census reports between 1990 and 2015 showed that ST-owned enterprises remained the lowest among all social groups, while SC-owned enterprises also recorded limited growth. In contrast, “other” social groups, including dominant and forward castes, controlled the overwhelming majority of enterprises. 

In rural India, the disparities are sharper. Based on Socio-Economic Caste Census data from 2011, the study found that only a small proportion of SC and ST households had access to salaried employment. The majority depended on manual casual labour for survival. Nearly 75% of rural households overall earned less than ₹5,000 per month at the time, with SC and ST households disproportionately represented in the lowest income brackets. The authors caution that although these figures are dated, the absence of updated caste-disaggregated income data makes them among the last comprehensive official indicators available. 

The study further links caste inequality to migration patterns. Quoting recent migration research, it says temporary labour migration rates remain highest among STs and SCs, driven by lack of employment opportunities, landlessness and caste-based exclusion in villages. Gujarat, the report notes, recorded one of the highest rates of temporary tribal labour migration in the country. 

The authors conclude that India’s labour market remains “imperfect” because of the combined influence of informality and entrenched social hierarchy. “Equal opportunities in the labour market are far for the private sector,” the study states, adding that discrimination continues despite decades of constitutional protections and welfare policies.