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This study examines the effects of a collaborative inquiry based learning environment designed to foster covert processes of self regulation underlying literacy production and comprehension. The study consisted of 145 students randomly assigned to three groups. Group 1 (54) was exposed to literacy instruction within communities of learners. Group 2 (48) was exposed to similar literacy experiences within a traditional classroom setting. Group 3 (43) was exposed to intensive reading and writing experiences within a traditional instruction setting. Results indicated that embedding literacy instruction in communities of learners is superior to traditional methods in fostering writing competence. Findings support applying writing instruction within a metacognitive environment in which regulation is shared and distributed among the students and teacher.