This article empirically analyzes factors influencing income inequality in 15 developed and developing economies over the period 1996 to 2010. Evidence from A panel dataset using an OLS regression confirms the presence of Kuznets' inverted-U hypothesis for developed economies, which indicates that there is a negative relationship between per capita income and income inequality. The relationship between growth rate and income inequality is also negative. In relation to education, the study finds a significant negative relationship between the rate of enrollment in education and income inequality, where the effect is larger in developing economies. Furthermore, the effects of government spending and trade on inequality are insignificant for developing economies. The determinants of income inequality, which vary from developed to developing countries, have intrigued economists over the decades, prompting them to conduct several studies on the topic. This article examines the determinants of income inequality over a 15-year period between 1996 and 2010 in two specific regions; developed economies from Europe and developing economies, the majority of which are South American countries. This paper will compare the results to distinguish correlations and differences between the two groups of countries. Therefore, this study will incorporate the Gini coefficient as the dependent variable. The purpose of using this measure is to determine the levels of income inequality between the two groups discussed above. Previous studies examine inequality in health and income and use the Gini coefficient concentration index; this is evident in (Podder, 1995). The main determinants of income inequality are GDP per capita… middle of paper… when GDP per capita is above $2,000. Barro's paper also supported the Kuznets curve when examined across countries and over time, stating that it is a "clear empirical regularity" that inequality declines in the long run. Other studies have challenged the idea that inequality has a negative relationship with economic growth, particularly the Kuznets curve. such as Forbes (2000), which found a strong positive relationship between the two variables. It used a panel data approach, focusing on 45 countries over a 30-year period. The Forbes study highlighted that in the short and medium term an increase in income inequality had a strong positive effect on economic growth, thus increasing the gap between rich and poor individuals. However, he stated that due to insufficient long-term data at the time of researching the article, he was only able to focus on a short to medium-term time scale..