The social disorganization model of crime and delinquency generally ha
s argued that the socioeconomic composition of neighborhoods is relate
d to rates of illegal behavior only to the extent that it increases th
e likelihood of residential turnover and racial/ethnic heterogeneity.
Such an orientation reflects the traditional assumption of human ecolo
gy that urban areas are characterized by continual processes of reside
ntial upgrading as groups become progressively assimilated into the ec
onomic structure of the community and have more economic resources at
their disposal. However, the validity of the indirect effect hypothesi
s may have become questionable in the many cities that have experience
d a significant economic decline during the last few decades, thereby
leading to the creation of an immobile underclass population. We exami
ne here the relative validity of the indirect effect hypothesis in Chi
cago's neighborhoods during 1960 and 1980. While the findings generall
y support the traditional indirect effect assumption of social disorga
nization, they also emphasize the need to consider the economic and po
litical contexts in which these communities are embedded.