This paper uses micro data from the Brazilian Pesquisa Nacional Por Amostra de Domicilios (PNAD) between 1981 and 2002 to ascertain the role that local labor demand proxies by male adult employment in the area of residence plays in shaping the work and schooling decisions of children aged 10-15. Contrary to the widespread view that child labor is procyclical, authors find evidence that employment (schooling) falls (increases) among young children (aged 10-12) when local labor demand is stronger. This result is consistent with the view that children's work is to a large extent the result of poverty, and that parents want to protect their children from child labor and do so if offered the opportunity.