Child labour is both a cause and a reason to poverty. Child labour is a slippery slope to become poorer.

We have to understand the reason behind children working. When a child is working he does so because
the opportunity cost of working is low or the opportunity cost of not working is high; this happens in a
poor country, on the other hand if a kid is working he will not go to school; in the long term human
capital will decrease and he will not generate the input an educated kid generates so this will keep the
country poor. Further there is a political-economical disadvantage of child labour: the closing of
markets. Finally we will discous a policy that would decrease the amount of child labour.

A kid will work if the opportunity cost of working is low. A country that does not offer public and
accessible schooling will make going to school more expensive and inaccessible to kids. If this is the
situation the kid does not have much incentive to go to school, since he cannot go to school he would be
use as a child labour. A country that cannot offer accessible schooling is normally a developing country.

Further even if the school is accessible kids may not go. If the opportunity cost of attending school is
high then they would be working instead of going to school. Assuming that the child does has the
chance of going to school, however, he would be more valuabe working in the farm and generating
income to their family that geting an education. In this esenario going to school is extremlly expensive
and even though accessible the child will not enrol in school.