Natanael Ramírez

Learning Economics By Servicing: A Mexican Experience of Service Learning in Microenterprises

This paper explores a complementary method of teaching economics founded in the service learning approach, and evaluates the effectiveness of service learning programs where final-year students of college engaged in Community Service provide microeconomic assistance to underprivileged microenterprises. This approach may be helpful not only to provide economic consulting and transfer some basic economic concepts to foster economic education among poor entrepreneurs, but also to create excitement in learning economics and meaningfulness of the concepts reviewed in class through embarking the students in communitarian activities. The effectiveness of the learning program is measured by estimating learning curves. The paper suggests that most of learning occurs outside the classrooms, and undertakes the hypothesis that service learning programs particularly in developing, countries can play an important role in supporting poor microenterprises.

BEYOND THE LOCAL MARKET: MEXICAN CROSS-BORDER ENTREPRENEURS IN THE UNITED STATES

This study examines the characteristics of self-employed workers who reside in Mexico but work in the United States and the factors behind their decision to become cross-border entrepreneurs. This group is compared to entrepreneurs who live and operate in Mexico. Based on census data from Mexico, it is observed that cross-border entrepreneurs are older and more educated, and have stronger ties to the United States, shorter workweeks and higher hourly and monthly earnings than self-employed workers who live and work in Mexico. A series of probit models show that years of schooling, having previously resided in the United States and having an adult in the household who was born in the United States increase the likelihood of becoming a cross-border entrepreneur. Ordinary least squares earnings regressions show that years of schooling and years of work experience are positively associated with the earnings of entrepreneurs operating in Mexico, but not with those of cross-border entrepreneurs.

Understanding the Mecanisms Behind the Profitability and Market Power of Marginalized Microenterprises

The paper analyzes the behavior of microenterprises in a context of imperfect competition in which they have the ability to profitably raise the market price of goods over their marginal cost. This allows them to survive and even be profitable despite the conditions under which they typically operate. We use an econometric model to conduct the analysis, in which we explain the Lerner index as a function of several qualitative variables previously classified by area of influence. We conclude that microenterprises are capable of being profitable and operating with market power through advertising and sales strategies due to the flexibility of the production process. In any case, the capacity to set prices is strongly influenced by the socioeconomic conditions of the market in which they operate.