The expansion process of Latin American higher education systems experienced in recent decades has drawn the attention of many scholars. Its impact has been assessed in relation to the broadening of access to education for the low-income sectors and the reduction of social inequality; likewise, the market's capacity to absorb a greater number of qualified workers has also been analysed. Therefore, it has been suggested that the consolidation of a process of 'credentialism' may be gaining momentum whereby: despite a moderate success rate in the expansion of access to higher education, inequalities would not have been reduced; rather, only a deterioration in the value of degrees would have taken place. This paper centres around the expansion process in the Argentine public university system and addresses these topics. We will argue that, despite taking a distinct course of its own, this expansion process falls within the phenomenon of institutional diversification which swept Latin America in the 1960s. The diversification of the Argentine higher education system developed with particular intensity within the university system, where the characteristics and performance of the different universities vary greatly. This, in turn, facilitated the advancement of labour-power differentiation.