Vocational training in Morocco: Effects on wage formation and wage inequalities

Abstract

This article aims to assess and analyze the role of Vocational Education and Training (VET), in the formation of wages and wage inequality in Morocco. For this, the data from the National Survey on Household Consumption Expenses of 2014 (ENCDM-2014) were used. The descriptive statistics essentially show that the average wage of individuals who have completed a VET cycle is systematically higher than that of those without VET for all levels of education, that of "without educational level" being the lowest. The wage gap between the two categories is considerably remarkable for individuals with a secondary education level. They also show that the wages in the agricultural sector are the lowest and the wages in the public service the highest. Wage inequality, measured by dispersion, is higher among individuals with VET compared to individuals who benefited from general education, for all levels of education and for all industries. Finally, the inequalities of opportunity due to education and training are higher compared to those due to the industry for example. Econometric analysis corroborated these trends observed by descriptive statistics.