The study examines two issues of the relationship between social capital and educational performance: the different effects of bridging and bonding social capital on urban educational performance and the contextual effects of social capital. The main argument states that bonding and bridging social capital are differently related to educational performance as well as poor versus rich communities. Based on a study of 204 Israeli municipalities the results confirm that bridging social capital is related to positive matriculation rates, and this is more pronounced in communities ranked low as opposed to high on a socioeconomic status scale. (Contains 4 tables.)