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In response to growing research and policy interest in the developmental contexts of early literacy, this study examined relations between neighborhood socioeconomic well-being, home literacy (parent–child shared reading and number of books at home), and directly assessed early literacy outcomes among 551 Head Start students in the fall of preschool. In Structural Equation Models, neighborhood socioeconomic well-being predicted home literacy, which in turn predicted early literacy (a latent variable derived from receptive vocabulary, letter-word identification, and concepts about print). Implications for future research concerning parent involvement at home in the context of neighborhoods and the early literacy of at-risk preschoolers is discussed.