By contrast, the trend decline in union density experienced by many OECD countries over the last decades is found to have raised the income gap between the rich and the poor. This is because such reforms are not found to benefit households in the lower-half of the distribution (Figure 21), even if they generate employment gains. This may reflect that, all else equal, broad-based reductions in labour taxes may have generally resulted in a lower degree of progressivity of the income tax schedule. Reforms in this area can nevertheless be designed to achieve both employment and equity objectives: targeting tax reductions to low-wage earners or increasing earned income tax credits allows for enhancing labour market inclusion and achieving income redistribution without undermining work incentives.