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Abstract Child labor is a persistent problem both for developing and developed countries. Academic literature holds a household responsible for this phenomenon where poverty, literacy level, and the de facto demography are considered important. A factor model is attempted in this study to investigate dynamics of child labor in a society in terms of these household characteristics. The model reveals that household‐poverty‐driven factors are the most serious while the household demography is the second most serious factor in the dynamics of child labor inLahore. Shockingly, household literacy does not have any role to play, at least not inLahore. The results will help policymakers to work in the domain of poverty to mitigate child labor, and also urge them to align societal factors, which shape household demography.
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