Using multilevel data, I find that residents of poor; mother-only neighborh
oods have higher levels of depression than residents of more advantaged nei
ghborhoods. My data are from the 1995 Community, Crime and Health survey a
probability sample of 2,482 adults in Illinois with linked information abou
t the respondents' census tract. Adjustment for individual-level race, ethn
icity, sex, age, education, employment, income, household structure, and ur
ban residence indicates that more than half of apparent contextual effect i
s really compositional, due to the fact that residents of disadvantaged nei
ghborhoods tend to be disadvantaged themselves; however; a significant cont
extual effect survives. All of the distressing effects of female headship a
nd poverty in the neighborhood are mediated by perceived neighborhood disor
der. The daily stress of living in a neighborhood where social order has br
oken down is associated with depression.