Dynamic Complementarity

Author: James Heckman (University of Chicago)Haihan Tian (University of Chicago)Zijian Zhang (Columbia University)Jin Zhou (City University of Hong Kong)
Posted: 4 November 2025

Abstract

Dynamic complementarity is the concept that past investments that lead to higher stocks of skill at an age, promote the growth of skills from investment at that age. We define and produce evidence on dynamic complementarity and its three components using unique Chinese data from a home visiting program for young children targeted to parents in rural China. In addition, we investigate growth in learning due to innate, parental, and environmental factors that occur in the absence of any formal intervention.
JEL codes: J1, D83, C1, C5
Keywords: Dynamic Complementarity, Learning, Human Capital