We examine work participation and schooling for children aged 7–15 using survey data from rural Ethiopia. Bivariate probit and age-adjusted educational attainment equations have been estimated. Male children are found to be more likely to attend school than their female counterparts. ‘Specialization’ in child labour is also found, with females more likely to participate in domestic chores while males participate in market work. The likelihood of combining schooling with work is found to increase with family size and ownership of livestock. Importantly, child labour reduces educational attainment of children. Interventions aimed at increasing educational opportunities, reducing poverty, and family planning may be vital in raising educational attainment of children.