The manuscript presents a concept of the mechanisms of the neighborhood effects which has been empirically grounded in a long-term qualitative study conducted by me in one of Łódź disadvantaged residential environments. The theory generated during the study fits into a model that explains the neighborhood impact in terms of social processes endogenous to the neighborhood. In particular, it offers an explanation of the neighborhood impact in terms of social heterogeneity and consequential stigmatization of the selected groups of residents.  The reconstruction of the stigmatization process and its outcomes for the selected groups of residents − children and youth − inspired my reflection on empowering social work in socially non-homogeneous neighborhoods, which I also put forward in this contribution.