Income inequality is considered one of the major concerns to a lot of governments worldwide, as the Gini Coefficient which is considered the measurement of the inequality for a scale from 0 to 1, as 1 represents the perfect inequality. The current paper is examining the impact of the foreign direct investment inflows, elderly population, unemployment rate, expenditures on education and trade openness, on Income inequality in (19) Latin American economies. The paper used a balanced panel data approach covering the period from 2000 to 2019. The main hypothesis of the paper is: trade openness and the unemployment rate having a positive impact on Gini Coefficient, while the foreign direct investment and expenditure on education having a negative effect on Gini Coefficient. The paper found a significant negative impact of expenditures on education and elderly population on Gini coefficient, where a positive significant impact was found between trade openness and unemployment rates on Gini coefficient, the paper also found that there is no significance impact between FDI and Gini Coefficient.