Wage Gap Fuels Income Inequality in Morocco, Study Finds

In urban areas, wages represent the main source of household income, while in rural areas it is agricultural income, according to the High Commission for Planning in its recent note on the structure of household income sources. In urban areas, 43.7% of income comes from wages compared to 22.7% in rural areas. For the 20% least well-off households, this rate is 26.6%, 38% for the 60% of intermediate households and 39.2% for the 20% of the wealthiest households.

In 2019, the overall agricultural income of households was 36.7% in rural areas and 0.7% in urban areas, the HCP added, specifying that agricultural income represents 8.1% of the income of the 20% least well-off households and 7.3% of that of intermediate households. In addition, agricultural income accounts for more than 12.9% of the income of the 20% wealthiest households. "In total, agricultural income represents, in rural areas, more than half of the income of the 20% wealthiest households (54.4%), 19% of that of intermediate households and 9% of that of the least well-off," explained the HCP in its note.

Transfers also constitute an important source of income for households. More than 49% of these transfers come from public institutions, 40% from households and 11% from private institutions. They also constitute 22% of the income of urban households and 14% of the income of rural households.

"By income bracket, transfers constitute 28% of the income of the 20% least well-off households, 21.2% of that of intermediate households and 18.5% of that of wealthy households," the same source stressed. Income from non-agricultural self-employment represents 18% of household income. By bracket, 10.4% of the income of the 20% least well-off households, 17.9% of the intermediate and 18% of the wealthy households.

Furthermore, the wage income of the 20% wealthiest households is 14.1 times higher than that of the 20% poorest households. Thus, wage differences contribute 40% to overall income inequalities measured by the Gini index. However, income from non-agricultural self-employment constitutes the most palpable disparities, the source stressed.