International Labour Organisation (ILO) suggests poverty is the greatest single cause behind child labour. For impoverished households, income from a child's work is usually crucial for his or her own survival or for that of the household. Income from working children, even if small, may be between 25 and 40% of the household income. Other scholars such as Harsch on African child labour, and Edmonds and Pavcnik on global child labour have reached the same conclusion.
Lack of meaningful alternatives, such as affordable schools and quality education, according to ILO, is another major factor driving children to harmful labour. Children work because they have nothing better to do. Many communities, particularly rural areas where between 60–70% of child labour is prevalent, do not possess adequate school facilities. Even when schools are sometimes available, they are too far away, difficult to reach, unaffordable or the quality of education is so poor that parents wonder if going to school is really worth it.
Cultural causes
In European history when child labour was common, as well as in contemporary child labour of modern world, certain cultural beliefs have rationalised child labour and thereby encouraged it. Some view that work is good for the character-building and skill development of children. In many cultures, particular where the informal economy and small household businesses thrive, the cultural tradition is that children follow in their parents' footsteps; child labour then is a means to learn and practice that trade from a very early age. Similarly, in many cultures the education of girls is less valued or girls are simply not expected to need formal schooling, and these girls pushed into child labour such as providing domestic services.
Macroeconomic causes
Biggeri and Mehrotra have studied the macroeconomic factors that encourage child labour. They focus their study on five Asian nations including India, Pakistan, Indonesia, Thailand and Philippines. They suggest that child labour is a serious problem in all five, but it is not a new problem. Macroeconomic causes encouraged widespread child labour across the world, over most of human history. They suggest that the causes for child labour include both the demand and the supply side. While poverty and unavailability of good schools explain the child labour supply side, they suggest that the growth of low-paying informal economy rather than higher paying formal economy is amongst the causes of the demand side. Other scholars too suggest that inflexible labour market, sise of informal economy, inability of industries to scale up and lack of modern manufacturing technologies are major macroeconomic factors affecting demand and acceptability of child labour.
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