Participation has emerged as a key theme in modern public policy. Latest developments in European education and youth policy suggest that consultations with youth on policy proposals and community governance are rather the rule than an exception. However, majority of studies have focused on the students’ participation as such, leaving without attention the question of factors that predict the participation. Is students’ active participation in the school associated with the size and location of the school? What is the role of inclusive and open school climate in enhancing students’ activities? Current paper uses data of recent IEA International Civic and Citizenship Education Study (ICCS 2009) to investigate the effect of local community characteristics on participation of lower secondary school students inside and outside the school. The analysis employs data of 145 schools and more than 2000 15-year-old students in Estonia, a country which is characterised by the high urbanization rate and extremely large disparities in school size. The assumption is that in rural areas that lack community resources the participation inside the school is dominant. In urban areas, which are more diverse itself, an open school climate becomes a crucial factor in making choices between inside and outside activities.