We prove that equivalent locally compact, locally Hausdorff, étale groupoids with paracompact unit spaces have Morita equivalent reduced and full -operator algebras for every . The reduced theorem requires pairing-valued approximate identities, reflecting the failure of unconditionality of the reduced norm for , while the full theorem rests on a full-clopen reduction theorem proved by dilating spatial representations. For , we also compare the concrete -linking algebra of the reduced Morita equivalence with the reduced -operator algebra of the linking groupoid: the canonical comparison is contractive, injective, and has dense range in general, and is an isometric isomorphism for . We further study Morita cycles arising from proper étale groupoid correspondences, including the reduced case under suitable extension hypotheses. Applications include an version of Green’s symmetric imprimitivity theorem, results for coarse groupoids and inverse semigroups, and invariance of the corresponding -theory.

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