Income Changes and Cognitive Stimulation in Young Childrens Home Learning Environments

Early home learning environments are the result of interactions between the developing children and the opportunity structures provided by their families. Income is one of several resources that affect the cognitive stimulation that children experience. Using data from the National Longitudinal Survey of Youth (N = 2,174) this study examines the influence of household income on cognitive stimulation during the transition to school (aged 3-4 years to 7-8 years). Cross-sectional and longitudinal fixed effects regressions are estimated to examine incomeʹs effect. Household income was positively related to the level of cognitive stimulation in childrenʹs home environments across both sets of analyses. Home environments of children in low-income households were particularly sensitive to income changes over time. The implications of these results for programs and policies that reduce disparities in school readiness are discussed.