It is a common belief that children will thrive if educated amongst better class and schoolmates. It is a belief that guides many parents in their choice of school, and has important implications for policy on school choice and organisation. Many studies have tried to measure this 'peer-group'...

We estimate peer effects for fourth graders in six European countries. The identification relies on variation across classes within schools. We argue that classes within primary schools are formed roughly randomly with respect to family background. Similar to previous studies, we find sizeable...