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

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.