This article analyses developments in the labour market and incomedistribution in Argentina between 2002 and 2007, using data from thePermanent Household Survey and econometric estimates. Following the2001 crisis the employment situation improved in the aggregate and therewas initially a marked decline in income concentration. This reduction latertailed off, however, apparently because of differences in the opportunitiesfor different types of households to reap the benefits of growth. Membersof resource-poor households had less chance of finding work and faceddisadvantages in terms of pay and labour market participation. The isolationand social homogeneity of the neighbourhoods in which these householdswere located appear to have influenced the distributive outcome.