Millennials vs. “Zoomers” Tax Compliance Behaviour in Romania: SEM and GLM with Survey Data

Camelia Surugiu; Marius-Răzvan  Surugiu; Catalin Gradinaru

doi:10.5755/j01.ee.35.1.33517

Authors

Camelia Surugiu Faculty of Business and Administration, The University of Bucharest, Romania
Marius-Răzvan Surugiu Institute of National Economy, Romania
Catalin Gradinaru Faculty of Business and Administration, The University of Bucharest, Romania

DOI:

https://doi.org/10.5755/j01.ee.35.1.33517

Keywords:

tax compliance, Gen Y, Gen Z, survey data, awareness, tax morale

Abstract

Tax compliance (TC) behaviour differences between the Romanian Millennials and “Zoomers” are investigated in this paper to identify the variances in TC behaviour between generations. A questionnaire was developed, and it was applied to 350 respondents. Online survey data were collected from May to July 2022. The influences on TC from various variables were considered using generalized linear models (GLM) and path analysis with Structural Equation Modelling (SEM). The findings show a positive impact from awareness, age, and tax morale, emphasizing the need for measures to increase awareness of the tax system and the level of citizens’ tax morale. These findings are crucial for policymakers as they can create appropriate programs to educate people about TC behaviour and cater them to different generations. Also, tax morale's sensitivities may be affected by these tailored programs. The current research presents fresh avenues for further investigations into generational variations and the impact of emotions on TC behaviour.

Author Biographies

Camelia Surugiu, Faculty of Business and Administration, The University of Bucharest, Romania

Camelia Surugiu is a full professor at the University of Bucharest, Faculty of Administration and Business, Romania. Her areas of interest concern tax compliance and tax harmonization.

Marius-Răzvan Surugiu, Institute of National Economy, Romania

Marius-Răzvan Surugiu is a senior researcher at the Institute of National Economy, Romanian Academy, Bucharest, Romania. His research interests are economic development and the relationship between taxation and the business cycle.

Catalin Gradinaru, Faculty of Business and Administration, The University of Bucharest, Romania

Cătălin Grădinaru is a lecturer at the University of Bucharest, Faculty of Administration and Business, Romania. He is interested in strategic planning and competitive business strategies.