The widely reported social pathologies of urban ghettos, barrios, and
other slum areas have played a prominent role in the backlash against
Aid to Families with Dependent Children and other social programs. The
policy debate, however, has been fueled by a series of stereotypes ab
out the characteristics of the residents of such neighborhoods. This a
rticle complements existing ethnographic research on high-poverty neig
hborhoods by examining social and economic data from the 1990 Census o
n all neighborhoods in U.S. metropolitan areas. High-poverty areas are
found to contain a surprising amount of social and economic diversity
. Although some residents clearly engage in ''underclass'' lifestyles,
many of their neighbors are not public-assistance recipients and do p
articipate in the labor market, albeit in lower-skill occupations and
for fewer hours and lower wages. Other similarities and differences be
tween high-poverty areas and other neighborhoods are explored, leading
to a richer understanding of the nature of concentrated urban poverty
.