According to the Merriam Webster online dictionary, peer-review is, "a process by which something proposed (as for research or publication) is evaluated by a group of experts in the appropriate field."
Articles that appear in peer-reviewed journals are rigorously reviewed by other experts in the field before they get published. In psychology, peer-reviewers are making sure that the study design is sound and that ethics standards are followed.
This video from NC State University Libraries succinctly describes what peer-review is and why it is important. See the side-bar for more information about identifying peer-reviewed articles.
This video is under a Creative Commons 3.0 BY-NC-SA US license.
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Once you have found an article from a database, double-check that it is truly peer-reviewed. Here are some characteristics to look for:
Long - often 10-20 pages.
An abstract at the beginning of the article. Abstracts are short summaries of an article.
Many citations at the end of the article, probably between 20 and 50.
Often articles will contain charts and tables of data. These articles won't look like the glossy ones you find in National Geographic with lots of photos!
Written at an elevated, academic level and directed at others who work in the field of psychology.
Finally, click on the title of the journal in which your article is published. Many databases will display a page that will specify whether or not this is a peer-reviewed, academic journal. If in doubt, ask your librarian!