Conventional wisdom holds that the emigration of highly skilled workers depletes local human capital developing countries.  But when the very prospect of emigration induces people to invest more in their education, the effects might not be so negative.  We analyze a unique natural quasi-experiment in the Republic of Fiji Islands, where political shocks have provoked one of the largest recorded expoduses of skilled workers from a developing country.  We use rich census and administrative microdata to show that high rates of emigration by tertiary-educated Fiji Islanders not only raised investment in tertiary education in Fiji, but also raised the stock of tertiary-educated people in Fiji - net departures.

Michael Clemens is a senior fellow at the Center for Global Development where he leads the Migration and Development initiatiave.  His research focuses on the effects of international migration from and in developing countries.  Michael joined the Center after completing his Ph.D. in economics at Harvard.  His past writings have focused on the effects of foreign aid, determinants of capital flows and effects of tariff policy in the 19th century and the historical determinants of school system expansion.  Michael has served as a consultant for the World Bank, Bain & Co., the Environmental Defense Fund, and the United Nations Development Program.

Dr. Brian Chen's research has examined the tradeoffs between moral hazard and efficiencies in the integration of physician and non-physician medical services in the presence of asymmetric information. He has looked at a policy intervention in Taiwan that prohibited self-referrals of patients to physician-owned pharmacies unless the physician group integrated pharmacy services into the clinic by hiring an onsite pharmacist. He found that the policy reduced drug expenditures by close to thirty percent among physicians that did not have an onsite pharmacist. However, these physicians responded by increasing the overprovision of diagnostic services not covered by the policy, thereby reducing the effectiveness of the policy. Forty-five percent of the clinics that did not have an onsite pharmacist prior to the policy hired one subsequent to the implementation of the policy. Overall, after integration, the policy applied to only seventeen percent of clinics, and only reduced average discretionary expenditures by about two-point-five percent. Chen's research also shows that despite the reduction in drug utilization, patients treated at clinics without an onsite pharmacist did not have greater observable adverse health events than patients treated at integrated clinics. His results show that moral hazard costs of self-referral incentives are large, that the “safe harbor” exemption severely reduces the effectiveness of the policy, and that the exemption explains much of the recent integration of ancillary services into physician offices.

Dr. Brian Chen recently completed his Ph.D. in business administration in the Business and Public Policy Group at the Haas School of Business, University of California at Berkeley. He received a Juris Doctor from Stanford Law School in 1997, and graduated summa cum laude from Harvard College in 1992.

This colloquium will feature presentations by two visiting scholars from China. First, Dr. Huijun Liu will present research on health risks associated with gender imbalance in China. The problems of abnormal sex ratio at birth and high female infant mortality have plagued many Asian countries with a strong male preference and gender inequality. In China, these problems having lasted for more than twenty years and contributed to a serious gender imbalance in the population. As a direct consequence, “surplus men” or “forced bachelors,” are expected to increase to more than 30 million. Dr. Liu will discuss the potential health risks and other social problems likely to be exacerbated by this large-scale gender imbalance in China.

Second, Dr. Dahai Zhao will present “How Is Health Insurance Coverage Utilized among Migrant Workers in Shanghai, China?” According to the regulations of the Chinese national and Shanghai municipal governments, migrant workers employed in Shanghai should all be entitled to the Shanghai Migrant Worker Hospitalization Insurance (SMWHI) without premium and the vast majority should also have coverage through the New Rural Cooperative Medical System (NRCMS). Dr. Zhao will present results from research, conducted jointly with Dr. Wei Yu and Dr. Alan M. Garber, examining the status of the coverage and utilization of health insurance among migrant workers employed in Shanghai. Through their study, they found that a significant minority of migrant workers in Shanghai still had no health insurance, and that health insurance utilization among migrant workers was strongly limited by hospital location.

Huijun Liu is an associate professor in the Public Policy and Administration School at Xi'an Jiaotong University, China. She received her PhD in management science and engineering from the Management School of Xi'an Jiaotong University. Her main areas of research focus on gender imbalance, reproductive health, vulnerability, and social support. Her current research focuses on how gender imbalance and migration amplify the risk of HIV transmission in China. Liu has published over twenty papers in Chinese academic journals, including China Soft Science, Population and Economics, Psychological Science Advance, Collection of Women's Studies, and Modern Preventive Medicine.

Dr. Zhao is an assistant professor with the School of Public Economics and Administration at Shanghai University of Finance and Economics (SUFE), and a fellow with the Center for Health Policy at SUFE. He earned a master's degree in medicine in 2005 and a PhD in 2008, both from Fudan University, China.

Professor Li Liang Dong of the Central Party School's Politics and Law Department advises directly senior officials in the Chinese Communist Party.  Professor Li received his doctorate from the Central Party School in Law.  His main research areas are:  democratic perspective, Western political thought, and political theory. 

Some of his key works include: "Contemporary Chinese Studies of Public Opinion" (Central Party School Press, 1996), "Mao Zedong and Chinese farmers" (China Farmers Press, 1993), "Contemporary Chinese Democracy Studies" (Contemporary World Press, 2001 edition) and "Third Wave and the Chinese Democracy" (Central Party School Press, 2001 edition).  He has published over 300 articiles.  Professor Li has hosted discussions on topics including "Public Discussion in China",  "Societal Transitions", and "Study of Political Stability".

Co-sponsored by The Center for Deliberative Democracy at Stanford University