Researchers at the University of Washington and University of Connecticut examined thousands of 30-second snippets of verbal exchanges between parents and babies.
They measured parents' use of a regular speaking voice versus an exaggerated, animated baby talk style, and whether speech occurred one-on-one between parent and child or in group settings.
"What our analysis shows is that the prevalence of baby talk in one-on-one conversations with children is linked to better language development, both concurrent and future," said Patricia Kuhl.
Baby talk was most effective when a parent spoke with a child individually, without other adults or children around.
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"The fact that the infant's babbling itself plays a role in future language development shows how important the interchange between parent and child is," Kuhl said.
Twenty-six babies about one year of age wore vests containing audio recorders that collected sounds from the children's auditory environment for eight hours a day for four days.
Within those segments, the researchers identified who was talking in each segment, how many people were there, whether baby talk - also known as "parentese" - or regular voice was used, and other variables.
When the babies were 2 years old, parents filled out a questionnaire measuring how many words their children knew. Infants who had heard more baby talk knew more words.
In the study, 2-year olds in families who spoke the most baby talk in a one-on-one social context knew 433 words, on average, compared with the 169 words recognised by 2-year olds in families who used the least babytalk in one-on-one situations.
The study was published in the journal Developmental Science.