The idea of neighbourhood effects implies that the demographic context of p
oor neighbourhoods instills 'dysfunctional' norms, values and behaviours in
to youths, triggering a cycle of social pathology. It is argued that neighb
ourhood effects are part of a wider discourse of inner-city marginality tha
t stereotypes inner-city neighbourhoods. Reflecting upon arguments made in
the existing literature, the ideological underpinnings of the idea of neigh
bourhood effects are revealed. Essentialist conceptions of neighbourhood cu
lture among employers, educators and institutional staff contribute to the
neighbourhood effects phenomenon. It is also suggested that researchers and
policy-makers must recognise wider forces of cultural differentiation and
exclusion.