Kajetan Trzcinski

• This thesis examines distributional and labour market consequences of fiscal policy with reference to three case studies during periods of economic growth, crisis, and recovery. The principal method of analysis is the microsimulation of tax and benefit systems applied to large and representative household datasets. The first study explores the revenue and redistributive effects of tax policy reforms in Europe during the period of growth between the financial crisis and the COVID-19 pandemic. It highlights the interplay between wage growth and the progressivity of income tax systems, shedding light on their limited redistributive capacity in Central European and Baltic states. The second study focuses on the economic crisis triggered by the pandemic in Brazil. We examine how fiscal policies were expanded to broaden the safety net for its most vulnerable population, reducing poverty despite the unfavourable economic conditions. The final example turns to Poland’s personal income tax reform, implemented during the economic recovery following the pandemic. It assesses the distributional impact of the reform and its consequences for intra-family labour market incentives. Together, these case studies underscore the critical role of tax and benefit systems in shaping economic outcomes, highlighting challenges and opportunities for achieving equity and efficiency.