IDEAS home Printed from https://ideas.repec.org/p/bfi/wpaper/2026-31.html

Dynamic Complementarity

Author

Listed:
  • James J. Heckman

    (University of Chicago and IZA and also NBER)

  • Haihan Tian

    (The University of Chicago)

  • Zijian Zhang

    (Columbia University)

  • Jin Zhou

    (City University of Hong Kong)

Abstract

Dynamic complementarity is the concept that past investments that lead to higher stocks of skill at one age promote the growth of skills from investment at that age. We define and provide evidence on dynamic complementarity 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.

Suggested Citation

  • James J. Heckman & Haihan Tian & Zijian Zhang & Jin Zhou, 2026. "Dynamic Complementarity," Working Papers 2026-31, Becker Friedman Institute for Research In Economics.
    • Handle: RePEc:bfi:wpaper:2026-31
    as

    Download full text from publisher

    File URL: https://repec.bfi.uchicago.edu/RePEc/pdfs/BFI_WP_2026-31.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    2. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    3. James J. Heckman & Stefano Mosso, 2014. "The Economics of Human Development and Social Mobility," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 689-733, August.
    4. Joachim Freyberger, 2021. "Normalizations and misspecification in skill formation models," Papers 2104.00473, arXiv.org, revised Sep 2025.
    5. Kenneth I. Wolpin & Petra E. Todd, 2006. "Assessing the Impact of a School Subsidy Program in Mexico: Using a Social Experiment to Validate a Dynamic Behavioral Model of Child Schooling and Fertility," American Economic Review, American Economic Association, vol. 96(5), pages 1384-1417, December.
    6. Daniela Del Boca & Christopher Flinn & Matthew Wiswall, 2014. "Household Choices and Child Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 137-185.
    7. James J. Heckman & Jin Zhou, 2026. "A Study of the Microdynamics of Early-Childhood Learning," Journal of Political Economy, University of Chicago Press, vol. 134(1), pages 49-85.
    8. Juan Chaparro & Aaron Sojourner & Matthew Wiswall, 2020. "Early Childhood Care and Cognitive Development," Working Papers 2020-012, Human Capital and Economic Opportunity Working Group.
    9. Flavio Cunha & Eric Nielsen & Benjamin Williams, 2021. "The Econometrics of Early Childhood Human Capital and Investments," Annual Review of Economics, Annual Reviews, vol. 13(1), pages 487-513, August.
    10. Joseph P. Romano & Michael Wolf, 2005. "Stepwise Multiple Testing as Formalized Data Snooping," Econometrica, Econometric Society, vol. 73(4), pages 1237-1282, July.
    11. Yuehao Bai, 2022. "Optimality of Matched-Pair Designs in Randomized Controlled Trials," Papers 2206.07845, arXiv.org.
    12. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages 3-33, February.
    13. Daniela Del Boca & Christopher Flinn & Ewout Verriest & Matthew Wiswall, 2026. "Parenting with Patience: Parental Incentives and Child Development," Journal of Political Economy, University of Chicago Press, vol. 134(1), pages 210-284.
    14. Emilia Del Bono & Josh Kinsler & Ronni Pavan, 2022. "Identification of dynamic latent factor models of skill formation with translog production," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(6), pages 1256-1265, September.
    15. Francesco Agostinelli & Matthew Wiswall, 2025. "Estimating the Technology of Children’s Skill Formation," Journal of Political Economy, University of Chicago Press, vol. 133(3), pages 846-887.
    16. Jin Zhou & James Heckman & Bei Liu & Mai Lu, 2026. "The Impact of a Prototypical Home Visiting Program on Child Skills," Journal of Labor Economics, University of Chicago Press, vol. 44(1), pages 119-148.
    17. Elizabeth M. Caucutt & Lance Lochner, 2020. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 1065-1147.
    18. Yuehao Bai, 2022. "Optimality of Matched-Pair Designs in Randomized Controlled Trials," American Economic Review, American Economic Association, vol. 112(12), pages 3911-3940, December.
    19. Flavio Cunha & James J. Heckman, 2008. "Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    20. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75(4), pages 352-352.
    21. Frederik H. Bennhoff & Jorge Luis García & Duncan Ermini Leaf, 2024. "The Dynastic Benefits of Early-Childhood Education: Participant Benefits and Family Spillovers," Journal of Human Capital, University of Chicago Press, vol. 18(1), pages 44-73.
    22. Joseph P. Romano & Michael Wolf, 2005. "Exact and Approximate Stepdown Methods for Multiple Hypothesis Testing," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 94-108, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jorge Luis García & James J. Heckman, 2023. "Parenting Promotes Social Mobility Within and Across Generations," Annual Review of Economics, Annual Reviews, vol. 15(1), pages 349-388, September.
    2. Gallegos, Sebastián & García, Jorge Luis, 2024. "Childcare and parenting in the production of early life skills," Economics of Education Review, Elsevier, vol. 101(C).
    3. James J. Heckman & Jin Zhou, 2026. "A Study of the Microdynamics of Early-Childhood Learning," Journal of Political Economy, University of Chicago Press, vol. 134(1), pages 49-85.
    4. Francesconi, Marco & Heckman, James J., 2016. "Symposium on Child Development and Parental Investment: Introduction," IZA Discussion Papers 9977, IZA Network @ LISER.
    5. Francesconi, Marco & Heckman, James J, 2015. "Symposium on Child Development and Parental Investment: Introduction," Economics Discussion Papers 16868, University of Essex, Department of Economics.
    6. Orazio Attanasio & Sarah Cattan & Emla Fitzsimons & Costas Meghir & Marta Rubio-Codina, 2020. "Estimating the Production Function for Human Capital: Results from a Randomized Controlled Trial in Colombia," American Economic Review, American Economic Association, vol. 110(1), pages 48-85, January.
    7. James J. Heckman & Stefano Mosso, 2014. "The Economics of Human Development and Social Mobility," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 689-733, August.
    8. Attanasio, Orazio & Cattan, Sarah & Fitzsimons, Emla & Meghir, Costas & Rubio-Codina, Marta, 2015. "Estimating the Production Function for Human Capital: Results from a Randomized Control Trial in Colombia," IZA Discussion Papers 8856, IZA Network @ LISER.
    9. Black, Nicole & Jayawardana, Danusha & Heckley, Gawain, 2024. "Children’s time allocation and the socioeconomic gap in human capital," European Economic Review, Elsevier, vol. 168(C).
    10. Emily Moschini, 2019. "Child Care Subsidies with One- and Two-Parent Families," 2019 Meeting Papers 42, Society for Economic Dynamics.
    11. Heckman, James J. & Raut, Lakshmi K., 2016. "Intergenerational long-term effects of preschool-structural estimates from a discrete dynamic programming model," Journal of Econometrics, Elsevier, vol. 191(1), pages 164-175.
    12. Serap Sagir & Çağaçan Değer & Durdane Sirin Saracoglu, 2023. "The Growth Effects of Alternative Early Childhood Development Investment Policies in the Turkish Economy," ERC Working Papers 2304, ERC - Economic Research Center, Middle East Technical University, revised Nov 2023.
    13. Lochner, Lance & Park, Youngmin, 2024. "Earnings dynamics and intergenerational transmission of skill," Journal of Econometrics, Elsevier, vol. 243(1).
    14. Elizabeth M. Caucutt & Lance Lochner & Youngmin Park, 2017. "Correlation, Consumption, Confusion, or Constraints: Why Do Poor Children Perform so Poorly?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 102-147, January.
    15. Uta Bolt & Eric French & Jamie Hentall Maccuish & Cormac O’Dea, 2018. "Intergenerational Altruism and Transfers of Time and Money: A Life-cycle Perspective," Working Papers wp379, University of Michigan, Michigan Retirement Research Center.
    16. Nicoletti, Cheti & Tonei, Valentina, 2017. "The Response of Parental Time Investments to the Child's Skills and Health," IZA Discussion Papers 10993, IZA Network @ LISER.
    17. Borga, Liyousew G. & Münich, Daniel & Kukla, Lubomir, 2021. "The socioeconomic gradient in child health and noncognitive skills: Evidence from the Czech Republic," Economics & Human Biology, Elsevier, vol. 43(C).
    18. Thakurata, Indrajit & D'Souza, Errol, 2018. "Child labour and human capital in developing countries - A multi-period stochastic model," Economic Modelling, Elsevier, vol. 69(C), pages 67-81.
    19. Flèche, Sarah & Lekfuangfu, Warn N. & Clark, Andrew E., 2021. "The long-lasting effects of family and childhood on adult wellbeing: Evidence from British cohort data," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 290-311.
    20. James J. Heckman & Bridget Galaty & Haihan Tian, 2023. "The Economic Approach to Personality, Character and Virtue," NBER Working Papers 31258, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bfi:wpaper:2026-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Toni Shears The email address of this maintainer does not seem to be valid anymore. Please ask Toni Shears to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/mfichus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.