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This study investigated the trajectory of Syrian refugee children's reading comprehension in Arabic, over three time points after migrating to Canada. A three-level multilevel model was built to estimate variances of child and family effects on initial reading comprehension scores and their change over time. Child-level language skills (Arabic vocabulary knowledge) and family-level home literacy environment (Arabic home language richness and parental education) were entered into the model to examine their individual contributions. Results showed that Arabic vocabulary improved children’s reading comprehension. In addition, the interaction between Arabic home language richness and parental education contributed significantly to reading comprehension development. A rich home language environment, and high parental education, were associated with greater improvement in reading comprehension.