Despite the detrimental effects of child labor have on the nation and the availabilities of severalrnwritten rights of children in the constitution, child labor is still a wide spread and sever problemrnin rural Ethiopia. The objective of this research was to identify the socio-economic factorsrnaffecting child labor in rural Ethiopia.rnRandom effects model using Generalized Least Squares (GLS) estimator was used to estimaternthe determinants of child labor. The micro and balanced panel data from the Ethiopian RuralrnHousehold Survey of the Economics department of the Addis Ababa University was employed inrnthe analysis.rnThe findings of the result supported the hypothesis that the child being farm worker andrndomestic worker, age of child, dependency ratio, the presence of infant in the house hold,rnhousehold size, number of plots of land, consumption expenditure, distance from high schoolsrnwere positively related to child labor. The region where the household resides also had an effectrnon child labor incidence. However, first work starting age, enrollment status of the child, agernsquare of child and the number of male members have had significant but negative effect onrnchild labor. In our study we found that there was gender and age bias in child labor incidence.rnFrom policy perspective, enforcing the family planning policy, provision of productive but laborrnsaving assets, investment in education infrastructure, enforcing the ILO convention of minimumrnage for employment and instituting saving and credit institutions like eqqub and bank shouldrndeserve essential place in mitigating child labor .However, we need all rounded but gender, age,rntype of activities and region specific policies rather than “one size fits all†policy