This article analyses a dimension that is almost completely absentfrom studies on the socio-territorial mechanisms that reproduce inequalitiesin Brazil: differences in the risk of school backwardness among childrenand young people between 7 and 17 years of age, based on residentialsegregation in Rio de Janeiro. Data from the 2000 Population Censuswere used to construct two sets of multilevel logistic regression models toquantify the risk of school backwardness among primary school students infourth and eighth grade, according to individual characteristics, family socioeducationalconditions and the social setting of their place of residence.Apart from showing that residence in a ghetto (favela); is associated witha higher risk of school backwardness, the results show that the risk ofbackwardness and school dropout is higher among inhabitants of favelaslocated in wealthy neighbourhoods. Possible explanatory mechanisms forthese findings are reviewed.