In this paper we investigate what affects school attendance and child
labour in an LDC, using data for Zambia. Since the data comes from a h
ousehold survey with information on all household members it allows us
to take account of unobserved household effects by introducing househ
old-specific effects in a legit model. The empirical analysis suggests
that both economic and sociological variables are important determina
nts for the choice between school attendance and child labour. In part
icular, we find some support for the hypothesis that poverty forces ho
useholds to keep their children away from school.