Kellogg Institute Faculty Fellow Alejandro Estefan

Whether investigating how tax and labor reforms impact taxpayers and workers in Mexico or how digital tools empower women entrepreneurs in Guatemala, Alejandro Estefan's research reflects a keen interest in the complexities of economic systems and their human consequences. An assistant professor of development economics at the Keough School of Global Affairs and a Kellogg Institute faculty fellow, he is motivated by a desire to make meaningful contributions to reducing inequality and improving livelihoods​.

His work contributes to the ambitious research agendas of the Keough School, the Kellogg Institute, and the Building Inclusive Growth (BIG) Lab – a research center in the Department of Economics at the University of Notre Dame that brings together some of the world’s best researchers to develop innovative, long-lasting solutions to help vulnerable populations in developing countries.

One of Alejandro’s most cited papers investigates the effect of tax reforms involving tax rate hikes and greater enforcement against tax evasion on government revenue and taxpayer compliance. He found that, while increasing the tax rate raises government revenue, it also lowers compliance. In contrast, stronger enforcement improves both outcomes. For this work, the International Economic Association and the Asian Development Bank awarded him first place in the 2023 IEA/ADB Innovative Policy Research Award, and Citibank awarded him second place in the 2020 Citibank-Banamex Prize for Excellence in Economic Research.

Another of Alejandro’s recent projects explored the effects of Mexico’s 2021 domestic outsourcing ban, which aimed to address the imbalance of power between firms and workers. His findings were nuanced: While the policy raised wages and reduced exploitation, it also led to unintended consequences, like reduced investment and higher market exits. It’s this willingness to confront both the benefits and trade-offs of interventions that makes Alejandro’s approach both rigorous and grounded​. For his work on domestic outsourcing, Alejandro was once again awarded the second place in the 2023 Citibank-Banamex prize for excellence in economic research.

In a third study, Alejandro worked closely with women micro-entrepreneurs managing food franchises in Guatemala. Through a digital training program that combined video lessons and personalized coaching, he saw firsthand how access to simple, effective tools could transform lives. The participants improved their business practices, increased their sales, and boosted their profits. For Alejandro, this research wasn’t just about numbers—it was about seeing how opportunities, when made accessible, could help people thrive​.

His most recent research centers on evaluating the protective impact of security devices on entrepreneurial profitability in Latin America, where extortion and racketeering limit the chances of the most marginalized small business owners. He found that security cameras prevent entrepreneurs from exiting the market and allow them to grow their businesses and escape poverty. Due to its policy relevance, this work has been funded by the Inter-American Development Bank.

In addition to his research, Alejandro is teaching Introduction to Economics, Program Evaluation, Poverty and Policy, and Advanced Econometrics to undergraduates and masters students in the Keough School. His academic journey, which includes a PhD from University College London and collaborations with organizations like the World Bank, reflects not just expertise but also a deep curiosity about how policies can work better for the most vulnerable.

This story was originally published at the biglab.nd.edu