During the recession in the 1970s and 1980 in less-developed countries in g
eneral and in Zambia in specific, private costs of schooling in creased and
school quality deteriorated. Combined with poverty, these changes may have
damaged the demand for primary education. This observation motivated a stu
dy of the relationship between economic variables and the demand for primar
y education. A binary choice model for the school enrolment decision is est
imated, and the relevance of economic incentives concerning the decision to
enrol in school is tested directly. Economic incentives to enrol in school
are reflected in household income, educational expenses and quality indica
tors, and the results show that they all affect school enrolment as expect,
even though the magnitudes of the effects are relatively moderate.