Parallel to other low-income countries, child labour remains a multi-dimensional grave problem
and policy issue in Ethiopia. It has long been recognized as an important barrier to national
human capital development and thus magnifies the risks of turning a country’s most prized assets
into its biggest liabilities. This study attempts to comprehensively investigate the various
determinants of child labour and schooling for children aged 7 to 17 using the data collected
from rural households of Kuyu woreda, Oromia Regional National State. The study employed
multinomial logit model to achieve the main objectives. The results from the empirical analysis
suggest that socio-economic characteristics of both child and household are found to be
significant determinants of child labour and school participation among rural households of
Kuyu woreda. The study has revealed the existence of positive and significant relationship
between child school and being the direct off-spring of the household head, the household head
education attainment and being free of recurrent health shocks of the household head, whereas
negative association between child school, and age and sex of the child, the presence of female
child aged between 7 and 17 in the household and loose of livestock. Besides, it has also
revealed the existence of positive and significant relationship between child work, and age of the
child and household size, whereas, negative association between sex and birth order of the child,
sex of the household head, household land size and inaccessibility to welfare programs. From
policy perspectives, improving the livelihood of rural communities, extending rural communities’
access to welfare programs, developing micro-insurance programs including micro-health
insurance programs and working in collaboration were recommended to hold back child labour
in turn enhancing child schooling
