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In this paper we investigated the influence of foreign direct investment, trade openness, level of development and level of education on Gini index (as a measure of income inequality). The analysis was conducted over the period 2000-2012, using data for 27 European Union member states. After a short statistical analysis we applied a Hierarchical cluster analysis, obtaining two main groups based on their level of GDP per capita. For each cluster we estimated a robust fixed-effect panel data model. The econometric r...