Abstract
The purpose of this study is to test a conceptual model that attempts to show how selected neighborhood characteristics are related to social isolation in later life. This model specifies that older adults with low levels of educational attainment are more likely to experience financial problems and that elderly people who are confronted by financial difficulties are more likely to reside in dilapidated neighborhoods. The model further predicts that deteriorated neighborhoods in turn tend to promote distrust of others and older adults who are more distrustful of others tend to be more socially isolated. Based on data provided by a nationwide survey of elderly people, subsequent analyses revealed strong support for the theoretical sequence described above.