However, new OECD evidence suggests that unions compress the distribution of labour earnings. To the extent that administrative extensions have a similar effect, their overall impact on income inequality is ambiguous, reflecting offsetting effects on employment and the dispersion of labour earnings. Shifting the tax mix away from such taxes and towards recurrent taxes on immovable property (the least distortive) and consumption taxes should thus raise living standards (Johansson et al., However, there is likely to be a trade-off with the income distribution objective since personal income taxes are progressive while real estate and consumption taxes are at best neutral in a lifetime perspective and in most cases tend to be regressive.