The paper presented in this ZEW Research Seminar estimates the effect of maternal schooling on children's mental health in adulthood. Using the Socio-Economic Panel and the mental health measure based on the SF-12 questionnaire, the authors exploit a compulsory schooling law reform to identify the causal effect of maternal schooling on children's mental health. They do not find that maternal schooling affects children's mental health. However, they find a positive effect on children's physical health operating mainly through physical functioning. Albeit the absence of a reduced form effect on mental health, the authors however find evidence that the number of friends moderates the relationship between maternal schooling and their children's mental health.