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Abstract'Social disadvantage' has many dimensions studied in various ways in the economics of education. Studies focus on its measurement, the characteristics of those experiencing it, its consequences and interventions to remedy some of its effects. Those likely to experience persistent disadvantage include lone parents, Indigenous Australians, people with disabilities and people with low educational attainment. It is children from these families whose educational progress we should closely monitor. Interventions can improve outcomes for disadvantaged children, but such programs need to be evaluated more rigorously in the future, and their evaluations released publicly to provide a sounder basis for future policy.

AbstractPapers that aim to measure peer effects on the educational outcomes of an individual face at least two problems in estimating them convincingly. The first is a sorting problem: in education, individuals who are already alike tend to sort together into similar schools or institutions. The second is the reflection problem: if my peers affect me, do I not also affect them? Solutions to these problems are not straightforward and the methods often used in the literature are contentious, as this review aims to make clear. External manipulation of peer groups, via quasi‐ or full randomisation, provides a necessary starting point.