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In many respects the transition from socialist regimes to a market economy has exposed, and even exacerbated, serious weaknesses in the higher education systems in Central and Eastern Europe. This study relies on a Difference-in-Differences quasi-experimental statistical estimation to test whether the transition from socialist regimes to a market-based economy has impacted government spending on higher education in post-socialist countries. The results show that this political transition was actually associated with a significant reduction of expenditures in tertiary education per pupil shown as a percentage of GDP per capita. This finding is congruent with the academic marginalism framework, which explains the reasons and origin of government officials’ perception of “usefulness” (or lack thereof) of the academic sector in post-socialist societies.