ABSTRACT: In the literature, several contradicting views can be found concerning rural–urban differences in individual social capital. This study combines a literature review with an empirical examination of the different points of view, applying multilevel modeling techniques on data collected from 2,332 students living across 216 municipalities. In general, social capital appears to be higher among students from municipalities in central agglomerations than among those from more rural municipalities. This effect could not be observed with respect to social capital from the family, but was established regarding social capital from friends and acquaintances. In addition, we found that living in an urban environment is associated with more pronounced socioeconomic inequalities in social capital from friends.