Contributions of Islamic scholars on labor economics and some empirical evidence from medieval Islam

This chapter presents a brief outline of Muslim scholars’ economic thoughts on labor economics. It discusses the thoughts of Shah Waliullah. The basic teaching of the Qur’an is to enjoin what is right and forbid what is wrong. Qur’an also defines the different characteristics of a worker, like honesty and efficiency. During the first phase, Abu Yousuf is the most prominent among the more than 30 Muslim scholars. His main contribution is toward government responsibilities, especially the rulers, and his focus is on the taxation system. Abu Hamid Al-Ghazali is the most prominent among the Muslim scholars who discussed economic issues in detail. Imam Ibn Taymiyyah explains market behavior in a highly scholastic manner. He emphasizes different ethical traits of the market, like honesty, lack of greediness, and freedom of choice. Ibn Qayyim, an Ibn Taymiyyah student, says that involvement in economic activities is a preferable action.