Employment inequality in India during the pandemic

Purpose The coronavirus disease 2019 (COVID-19)-induced response policies initiated by the Indian states disproportionately impact the employment of different groups in terms of gender, caste and religion. This study analyses the impact of the COVID-19-induced labor policies on employment inequality across different groups in India. Design/methodology/approach The authors identify different exogenous COVID-19-induced labor policies initiated by the Indian states, and synthesize them into direct and indirect labor policies. The authors employ a panel model to examine the impact of COVID-19-induced labor policies on employment inequality. Findings The authors find that the direct and indirect labor policies induce a decline in the employment rate, and create employment inequality among gendered and religious sub-groups. Females and Muslims have not significantly benefited from the COVID-19-induced labor policies. However, disadvantaged caste groups have benefited from direct and indirect labor policies. Research limitations/implications The time period during which this research was conducted was quite brief, and the qualitative impact of labor policies on employment inequality has not been accounted for. Practical implications This study unravels the distributive impact of the COVID-19-induced direct and indirect labor policies on the well-being of vulnerable laborers. Social implications The study provides novel empirical evidence of the beneficial role of a proactive government. This study’s findings suggest the need for specific distributive labor policies to address employment inequality among gender and religious groups in India. Originality/value The study employs new data sources and synthesizes the COVID-19-induced labor policies into direct and indirect labor policies. In addition, the study contributes to understanding the impact of COVID-19 induced direct and indirect labor policies on employment inequality across gender, caste and religious sub-groups in India.