Despite the improved fortunes of the elderly in general, rural elders
continue to face substantial economic hardships. In 1990, 16.1% of non
metropolitan elders were poor compared with 10.8% of their metropolita
n counterparts. This article develops a conceptual framework to analyz
e the higher than average poverty rates experienced by this group. Und
erstanding the causes of poverty among the rural elderly requires a di
fferent conceptual framework than that used to explain poverty among w
orking aged persons. Poverty among rural elders represents the accumul
ated effects of life experiences in environments of relative economic
deprivation and of life course transitions, such as widowhood, that ha
ve exposed them to elevated risks of poverty. The effect of community
of residence on rural elders' economic well-being is more likely to be
through the public sector than through the local economy, as would be
the case for younger poor people. A multilevel approach that emphasiz
es the life course and pub[ic sector capacity in the present area of r
esidence is required to understand rural older people's disadvantaged
position in U.S. society.