How Sensitive is the Demand for Primary Education to Changes in Economic Factors?

During the recession in the 1970s and 1980s in less-developed countries in general and in Zambia in specific, private costs of schooling increased and school quality deteriorated. Combined with poverty, these changes may have damaged the demand for primary education. This observation motivated a study of the relationship between economic variables and the demand for primary education. A binary choice model for the school enrolment decision is estimated, 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 indicators, and the results show that they all affect school enrolment as expected, even though the magnitudes of the effects are relatively moderate