Many of the sociodemographic, health status, and social support charac
teristics that predict the use of health services by elders vary by ar
ea of residence. Yet, little is known about how these factors affect t
he risk of institutionalization in rural, small city, and urban areas.
The purpose of this research was to: (a) determine the rate of instit
utionalization over a two-year period for impaired community-dwelling
elders in rural, small city, and urban areas; (b) test for residence d
ifferences in sociodemographic, health status, and social support char
acteristics likely to influence the risk of institutionalization; and
(c) examine their effect on the probability of being institutionalized
in each area of residence. Although rural elders are less likely to b
e placed in a nursing home than their small city or urban counterparts
, race and level of impairment affect the risk of institutionalization
more in rural than in urban areas.