This article investigates current socioeconomic disparities
within rural and urban areas. The empirical analysis is
grounded in an examination of urban and rural bias theories,
which have often underpinned poverty analysis. This
article suggests that poverty analysis can be improved by
moving beyond the rural–urban binary and investigating
differences across all geographical types (when data are
available). Using 2012 household survey data on South
Africa, the article sheds lights on substantial differences—
in household composition and access to services and assets—that
are likely to make households located in
particular geotypes far more vulnerable to poverty. Finally,
the article discusses how development policy can better
address the specific income-generating constraints that
disadvantaged areas face.