The Contraction of Higher Education in the Early Years of the Pinochet Regime

This chapter studies the contraction of higher education that took place in Chile during the early years of the Pinochet dictatorship. Luis Martínez highlights the economic and political factors that led to a sharp reduction in both government funding for higher education and the number of openings for incoming college students in the years immediately after the 1973 military coup. He summarizes the findings from a recent empirical literature documenting the socioeconomic impact of reduced access to college for the affected cohorts that reached college age during this period. These cohorts had worse labour market outcomes throughout their working lives, including lower labour force participation and higher unemployment. They also struggled to reach the top of the socioeconomic ladder in terms of income or wealth. These cohorts also have worse health and higher mortality rates. Their children also exhibit lower college enrolment rates, despite reaching college age more than a decade after Chile’s return to democracy in 1990. These persistent negative effects suggest a connection between the technocratic reforms implemented by the Pinochet reform under the guidance of the Chicago Boys and the political turmoil that Chile has experienced in recent years.