A new ZIPAR report estimates the private returns to schooling in Zambia. Results from a Generalised Propensity Score Matching Method show that higher levels of education command higher returns: the returns to primary schooling are 17.2%, the returns to junior secondary schooling (upper basic) are 21.8%, the returns to senior secondary school are 39%, while the highest returns are received when individuals attain tertiary schooling, 47.5%. These results have important ramifications for education policy and individuals investment decisions. Specifically, they imply that public provision of schooling should be concentrated at lower levels of education and that private provision of tertiary education should be encouraged. The public sector at tertiary level should: (1) be the regulator of standards and competition; (2) be the provider of strategic skills which the private sector cannot provide; and (3) promote equity by enabling disadvantaged