Chile People Chile is highly urbanized, with 86% of the population living in towns. Most people are of mixed Spanish-Indian descent. The estimated 800,000 Mapuche Indians live almost exclusively in the south. Santiago is home to one-third of the population. Large slum areas known as "callampas," or mushrooms, have grown up around Santiago, and water and air pollution are major problems. Many Chileans, especially those in small enterprises, live on subsistence wages. Over 25% of working women are employed in domestic service.