Public education spending in Chile, 1880-1920: An uncredible commitment

Authors

  • Cristian Castillo Universidad de Viña del Mar

DOI:

https://doi.org/10.22370/pe.2025.18.5024

Keywords:

structural inequality, public spending, education, oligarchic society, institutions, Chile

Abstract

This article analyzes the evolution of primary education expenditure in Chile during the period of the oligarchical parliamentarism (1880-1920), examining its relationship with structural inequality and its effects on economic development. Through a historical-comparative approach, the impact of land and power concentration on educational funding decisions is assessed, contrasting the Chilean experience with that of Japan and New Zealand. The results reveal that, while there was an increase in educational investment, it was limited by the interests of the ruling elite and their fear of social mobility, resulting in lower coverage compared to the other countries. The elimination of internal taxes and the recourse to external debt to finance public spending exacerbated this situation. It is concluded that structural inequality hindered a credible commitment to public primary education, perpetuating a legacy of inequity that still impacts the country's development. This study underscores the need for comprehensive educational policies that address both financial and structural aspects to promote greater equity and social mobility.

Downloads

Download data is not yet available.

References

ACEMOGLU, D. ROBINSON, J. (2006). Economic origins of dictatorship and democracy. Nueva York: Cambridge University Press. https://doi.org/10.1017/CBO9780511510809

ACEMOGLU, D. JOHNSON, S., ROBINSON, J. (2001). The colonial origins of comparative development: an empirical investigation, American Economic Review, 91 (5): 1369-1401. DOI: 10.1257/aer.91.5.1369

ACEMOGLU, D., ROBINSON, J. (2012). Why nations fail. The origin of power, prosperity and poverty. Estados Unidos: Crown Business. DOI:10.1355/ae29-2j

ALESINA, A., RODRIK, D. (1994). Distributive politics and economic growth, The quarterly journal of economics, 109 (2): 465-490. https://doi.org/10.2307/2118470

ATKINSON, A. B. (1974). The economics of inequality. Oxford: Clarendon Press.

BALAND, J., ROBINSON, J. (2008). Land and power: theory and evidence from Chile, American economic review 98 (5): 1737- 1765. DOI: 10.1257/aer.98.5.1737

BAUER, A. (1970). Expansión económica en una sociedad tradicional, Chile central en el siglo XIX, Historia, 9, 137-235.

BAUER (1975). Chilean rural society, from the spanish conquest to 1930. Cambridge: Cambridge University Press.

BECKER, G. (1975). Human capital. Nueva York: Columbia University Press.

BENABOU, R. (2000). Unequal societies: income distribution and the social contract, American economic review 90 (1): 96-129. DOI: 10.1257/aer.90.1.96

BENGOA, J. (1990). Historia social de la agricultura en chile, tomo 1: el poder y la subordinación. Santiago: Ediciones Sur.

BÉRTOLA, L., CASTELNOVO, C., RODRÍGUEZ, J., WILLEBALD, H. (2010). Between the colonial heritage and the first globalization boom: on income inequality in the southern cone, Revista de historia económica, 28 (2): 307-341.

BOIX, C. (2003). Democracy and redistribution. Cambridge: 97

Cambridge University Press. https://doi.org/10.1017/ CBO9780511804960

COLLIER, S. (1967). Ideas and politics of chilean Independence. Cambridge: The University Press.

DEININGER, K., SQUIRE, L. (1998). New ways of looking at old issues: inequality and growth, Journal of development economics, 57 (2): 259-287. https://doi.org/10.1016/S0304- 3878(98)00099-6

EASTERLY, W., LEVINE, R. (1997). Africa’s growth tragedy: policies and ethnic divisions, Quarterly journal of economics, 112 (4): 1203-1250. http://www.jstor.org/stable/2951270

EASTERLY, W., RITZEN, J., Y WOOLCOCK, M. (2006). Social cohesion, institutions, and growth, Economics and politics, 18 (2): 103-120. https://econpapers.repec.org/scripts/redir. pf?u=https%3A%2F%2Fdoi.org%2F10.1111%2Fj.1468- 0343.2006.00165.x;h=repec:bla:ecopol:v:18:y:2006:i:2 :p:103-120

EASTERLY, W. (2007). Inequality does cause underdevelopment: insights from a new instrument, Journal of development economics, 84 (2): 755-776. https://doi.org/10.1016/j. jdeveco.2006.11.002

EDWARDS, A. (1936). La fronda aristocrática en Chile. Santiago: Ediciones Ercilla.

ENGERMAN, S. Y SOKOLOFF, K. (1994). Factor endowments, institutions and differential paths of growth among new world economies: a view from economic historians of the united states, NBER Historical Paper 66.

ENGERMAN, S., SOKOLOFF, K. (2002). Factor endowment, inequality and paths of development among new world economies, NBER working paper 9259.

ENGERMAN Y SOKOLOFF (2005). Colonialism, inequality and long-run paths of development. NBER working paper 11057.

ENGERMAN, Y SOKOLOFF (2012). Economic development in the Americas since 1500. New York, Cambridge University Press.98

ERICKSON, L., VOLLRATH, D. (2004). Dimensions of land inequality and economic development, IMF working paper 04/158.

GARCIA-PENALOSA, C., CAROLI, E., AGHION, P. (1999). “Inequality and Economic Growth: The Perspective of the New Growth Theories,” Journal of Economic Literature, 37 (4): 1615-1660. DOI: 10.1257/jel.37.4.1615

GALOR, O., MOAV, O. Y VOLLRATH, D. (2003). Land inequality and the origin of divergence and overtaking in the growth process: Theory and evidence, Working Paper, 2003- 04, Brown University, Department of Economics, Providence, RI.

GALOR, O., VOLLRATH, D. (2009). Inequality in land ownership, the emergence of human capital promoting institutions and the great divergence, Review of economic studies, 76 (1): 143-179. https://econpapers.repec. org/scripts/redir.pf?u=http%3A%2F%2Fhdl.handle. net%2F10.1111%2Fj.1467-937X.2008.00506.x;h=repec:ou p:restud:v:76:y:2009:i:1:p:143-179

GERBER, J. (1991). Public school expenditures in the plantation states, Explorations in economic history, 28 (3): 309-322. https://doi.org/10.1016/0014-4983(91)90010-G

GLAESER, LAPORTA, LÓPEZ-DE-SILANES Y SHLEIFER (2004). ¿Do institutions cause growth? Journal of economic growth, 9 (3): 271-303. https://econpapers.repec.org/ scripts/redir.pf?u=http%3A%2F%2Fjournals.kluweronline. com%2Fissn%2F1381-4338%2Fcontents;h=repec:kap:jecgro :v:9:y:2004:i:3:p:271-303

GREZ, S. (1998). De la “regeneración del pueblo” a la huelga general. Génesis y evolución histórica del movimiento popular en chile (1810-1910). Santiago: Centro de Investigaciones Diego Barros Arana.

GOLDIN, C. (1999). Egalitarianism and the returns to education during the great transformation of american education, Journal of political economy, 107 (6): 65-94. DOI:10.1086/25010499

GREIF, A. (1994). Cultural beliefs and the organization of society, Journal of political economy, 102 (5): 912-950. http://dx.doi. org/10.1086/261959

HEYNEMAN, S. (2000). From the party/state to multi-ethnic democracy: education and social cohesion in europe and central Asia, Educational and policy analysis 22 (2): 173-191. http://dx.doi.org/10.2307/1164394

LINDERT, P. (2002). ¿What drives social spending? 1780 to 2020. En E. Kapstein y B. Milanovic (eds.), When markets fail, pp. 185-214. New York, Russell Sage Foundation.

MADDISON, A. (2023), Maddison project database 2023. https:// www.rug.nl/ggdc/historicaldevelopment/maddison/releases/ maddison-project-database-2020

MCBRIDE, G. (1936). Chile: land and society. Nueva York: Kennikat Press.

MITCHELL, B. (2007). International Historical Statistics, 1750- 2005. London: Palgrave Macmillan.

NORTH, D. (1990). Institutions, institutional change and economic performance, Cambridge: Cambridge UP. https:// doi.org/10.1017/CBO9780511808678

NORTH, SUMMERHILL Y WEINGAST (2000). Order, disorden and economic change: Latin America versus North America. En Bueno de Mesquita y H. Root (eds), Governinf for prosperity. New Heaven y Londres: Yale University Press.

NORTH, D., WALLIS, J. Y WEINGAST, B. (2009). Violence and social orders: a conceptual framework for interpreting recorded human history. Cambridge: Cambridge University Press. https://doi.org/10.1017/CBO9780511575839

PIKE, F. (1963). Aspects of class relations in chile, 1850-1960, Hispanic american historical review, 43 (1): 14-33.

RAJAN, R., ZINGALES, L. (2006). The persistence of underdevelopment: institutions, human capital or constituencies? CEPR Discussion Paper 5867.

RUBIO, YÁÑEZ, FOLCHI Y CARRERAS (2010). Energy as indicator of modernization in Latin America, 1890-1925, 100

Economic history review, 63 (3): 769-804. DOI:10.1111/ j.1468-0289.2009.00463.x

SAINT-PAUL, G., VERDIER, T. (1993). Education, democracy and growth, Journal of development economics, 42 (2): 399- 407. https://doi.org/10.1016/0304-3878(93)90027-K

SCHULTZ, T. (1964). The economic value of education, Nueva York: Columbia University Press.

Published

2025-08-11

How to Cite

Castillo, C. (2025). Public education spending in Chile, 1880-1920: An uncredible commitment. Economic Profiles, (18), 69–100. https://doi.org/10.22370/pe.2025.18.5024

Issue

Section

Sección Artículos