The paper focuses on the phenomenon of intergenerational persistence of child labour that saddles many poor societies. Using an overlapping generations model with heterogeneous agents, we highlight the interaction between inequalities in human capital, health and child labour. The model is based on a broad idea of human capital in which „health? and „skill? are complimentary factors. While health is augmented through nutritional intake, skill is accumulated via schooling. However, access to these inputs is determined by one?s relative position in the distribution of human capital. The model generates endogenous evolution of human capital distribution and child labour across generations. We show that along a balanced growth path, differential access to schooling and health inputs interact to generate multiple equilibria and lead to polarisation of human capital. Furthermore, the results suggest that public provision of education can lead to perfect equality in the long run, but a ceteris paribus ban on child labour is likely to exacerbate both health and schooling outcomes for the poor.