The neighborhood context was measured with an objective, census-based score that classified neighborhoods as underclass or not underclass. When black and white youths were compared without regard to neighborhood context, black youths were more often and more seriously delinquent that white youths. When black youths did not live in underclass neighborhoods, their delinquent behavior was similar to that of the white youths. Hierarchical multiple regression analyses revealed that youths' hyperactivity and parental supervision were the strongest correlates of juvenile delinquency. Single-parent status and poverty or use of welfare were not related to delinquent behavior. After individually measured factors were taken into account, residence in underclass neighborhoods was significantly related to delinquent behavior, while ethnicity was not. Results indicated the importance of including the neighborhood context when addressing the social problems of black youths. Figures, tables, appended methodological information, and 23 references (Author abstract modified)