This paper examines the results of the Third International Mathematics and Science Study (TIMSS) for the United States and South Korea. Eighth-grade mathematics scores for the two countries were studied as a function of school level variables and student level variables using Hierarchical Linear Modeling. Urban settings were found to be advantageous for Korean students, whereas U.S. students from suburban settings had higher mathematics scores. The urban-rural distinction was more significant in Korea. School level variables had little effect on Korean outcomes but accounted for over one-third of the variance in U.S. data, which was consistent with the hypothesis that highly centralized education systems leave little room for the effects of social capital variables. Educational technology shortages as perceived by school principals played no apparent role in the scores for either nation. Korean culture plays an important role in preventing the urban decline which has apparently affected urban education in the United States. Contains 25 references. (WRM)