In the field of criminology social inequality has long been theorized to be associated with crime. This issue has been extensively studied and empirical research has shown that income inequality and low socio-economic status are positively associated with crime perpetration and victimization. Latin America constitutes a particularly interesting case study to analyse the association between crime and inequality. Simultaneously, it is considered to be one of the most unequal and violent regions on the planet. Therefore, it might be tempting to conclude that inequality must play a major role in the explanation of this region’s high levels of crime and violence. While this possibility cannot be rejected, the overall goals of this chapter are to analyse and discuss this complex relationship, focusing not only on how inequality might explain crime and violence, but also on how criminal justice institutions stigmatize, label, and reproduce social inequalities and social exclusion.