Abstract:The aim of the paper is to analyze how financial development can affect the evolution of income inequality. Using a cross-section of countries, we try to identify some evidence on how the process of economic growth and the evolution of income inequality interact with credit constraints and financial markets accessibility. Some of the variables used are, obviously, drawn from the standard growth-inequality models used in the literature. Results seem to support our hypothesis that a better access to financial market leads to less inequality, while interest rate spreads are a symptom of greater income divide. Most of the relevant coefficients turn out to be highly significant and have the expected signs.