The search for the factors affecting fertility has been given greatrnattention with the hope that the outcome may help in formulation andrnimplementation of population policy. To this end, several factors have beenrninvestigated by many researchers. Among such factors, the value of childrenrnin general and economic value of children in particular is believed to play anrnimportant role. It is believed that the value of children is interrelated withrnfertility behavior. Along this line, the search for the factors affectingrneconomic value of children and its linkage with fertility behavior is the mainrntheme of this paper.The study has attempted to make use of parental perception of therneconomic value of children and it tries to explore its relationship with somernsocio -economic and demographic variables. The data used in this study isrncollected using sample survey from three different areas of Gonder region,rnwhich is located north west of Ethiopia. The survey was conducted duringrnthe month of April, 1993. The target population comprises individuals withrnchild bearing experience and still with the possibility of having a child.rnThe results of the study revealed that parents perception of economicrnvalue of children vary significantly with socio-economic and demographicrnjrnvariables. The study has also attempted to explore some correlate~ andrndeterminants of the demand for additional children. It is found that, generally,rnsocio-economic and demographic variables have similar effect both on therneconomic value of children variables and indicators of the demand forrnchildren. The study concludes by identifying variables that can have desirablernpolicy implication towards lower fertility. It is indicated that taking measuresrnto lower the value of children will create conducive situation to alter thernattitude towards high fertility