Great expectations: The effect of unmet labor market expectations after higher education on ideology

Higher education has massively expanded around the world, yet we know little about the political consequences of this expansion. Students generally have overly optimistic expectations about the returns to educational investment, and the effects of unmet expectations on graduates' political behavior have been overlooked. I study this phenomenon in Chile with observational and experimental methods, using unique panel survey data collected from new graduates covering 72% of higher education enrollment. The survey tracks students before and after they enter the labor market and includes an experiment that induces variation in their expectations. The panel data reveals that 65% of students have unmet expectations, and both methods indicate that this induces a shift toward progovernment/proequality ideology. Overall, this study shows that the gap between aspirations and reality upon graduation can be an important driver of political attitudes.