Religion, social class, and entrepreneurial choice

• We examine the role of religion and social class on occupational choice.
• We find that religions like Islam and Jainism are more favorable for self-employment.
• We find that Hindus are less likely to be self-employed compared to others.
• Individuals belonging to social classes lower in the social hierarchy are least likely to be self-employed.

While considerable concern has emerged about the links between religion and economic growth, little is actually known about how religion and social class impact the decision making of individuals. Using institutional theory and social dominance theory, this paper examines the influence of religion and social class on individuals' occupational choices. Based on a large-scale database from India, this paper finds that while some religions are relatively conducive to self-employment, some others have a negative impact on self-employment choices. Furthermore, individuals belonging to social classes that are lower in the social hierarchy are less likely to be self-employed. The role of both religion and social class in influencing the likelihood of choosing self-employment suggests an important link between religion, social class, and occupational decision-making.