This paper explores the determinants of child labour vis-a-vis child schooling. It further examines the influence of non-governmental organisations (NGOs) which are engaged in social labelling, on the incidence of child labour and schooling trade-off. The empirical results show that the probability of child schooling increases as well as child labour decreases if a carpet firm has adopted a labelling scheme. It can also be shown that labelling NGOs have a significant positive influence on sending the ex-child labourers to school. (Contains 1 table.)