Of course, it happens. The difference is that it is not tolerated. Someone who is bullied on the job has legal options. Likewise, legal action can be taken against a bullying neighbor. The only area in which bullies can act with impunity is at school, where even if the parents know and complain to the school, action is, far too often, not taken. Too often, the attitude is either that it's just kids being kids, or that the victim should just learn to tolerate such treatment. Just because it's kids involved, doesn't mean it shouldn't be taken seriously.
Not tolerated? It is the norm for many managers!