This study investigates the determinants of school drop out rate and failure to enrol into formal schooling in Zambia. This is because school access and participation is essential in the human capital development process of individuals given the importance of education as an input into economic and social development of a country. Parametric and semi parametric methods are used to estimate regressions on school dropout and failure to enrol into formal schooling. The study used national household survey data for 2006 (The Living Conditions Monitoring Survey (LCMS) V) collected by the Zambia Central Statistical Office (CSO). The results suggested that age, gender, education, household income, biological relationship to the household head, disability, residence, and household size are the significant factors that determine the child’s drop out rate and failure to enrol into formal education. This supports the hypothesis that the education of the household head and household income have significant effects on the child’s probability of dropping out or never attending school. The study recommends that government to improve the income possibilities of the head of the household by expanding employment opportunities.Further, government and other stake holders are advised to undertake research on the existence and effectiveness of existing arrangements in retaining children in schools as the basis for formulation of education policies.