[Excerpt] This report contains the findings from the Labor Demand (LD) Study of the carpet industry in India, Nepal, and Pakistan. The Labor Demand Study focused on employment decisions in the production stage of the carpet sector, the stage where carpets were knotted, tufted, or hand- loomed. The decision to focus on the production stage was motivated by policy and public concern about this stage. The study focused on export-oriented hand-production and excluded machine-made carpets and floor coverings. Approximately 525 establishments that produced hand-made carpets were interviewed three times in India, Nepal, and Pakistan over a 15-month period (April 30, 2010 to July 19, 2011). Establishments included formal registered factories, informal factories, cottage sheds, and homes. The purpose of collecting this panel survey was to document the volatility of carpet employment over time and to use the data to understand the underlying causes of child employment in the carpet sector. The total number of children under 18 employed in the hand-made carpet industry in India, Nepal, and Pakistan varied during the period of study from a low of 26,266 to a high of 34,216. Approximately three-fourths of those employed children were in Pakistan.