Factors Influencing the Level of Tax Literacy of Students of Bachelor Study Programmes in Economics at Faculties of Economics

Abstract

The paper is devoted to the issue of tax literacy, where the aim is to identify factors that affect the level of tax literacy of students of economics at the bachelor’s degree level in the Czech Republic. Through a questionnaire survey, students’ knowledge was tested and research hypotheses were verified using statistical and econometric methods. The survey showed that the level of tax literacy of the defined sample of respondents was satisfactory. Moreover, it was found that this knowledge is mainly influenced by the factor of taking courses with a focus on tax issues and the respondent’s own perception of the level of tax literacy. Specifically, respondents who had taken a tax course or considered themselves tax literate had, on average, five percentage points higher scores on the tax literacy test. On the other hand, the gender of the respondent can be considered a statistically insignificant factor.

Tax Compliance in Slovenia: An Empirical Assessment of Tax Knowledge and Fairness Perception

“…Kastlunger et al (2010) pointed out that gender needs to be examined with caution as it affects socialization and education. Natasha and Yustina (2020) and Formanova et al (2021) could not find a gender effect on the level of tax knowledge or literacy, which does not align with Fallan's (1999) conclusion that reportedly identified a higher level of tax literacy among males. A sizable gender gap in financial knowledge was identified by Yao et al (2023).…”

“…Coelho et al (2022) observed that gender differences are driven by various mechanisms, including income disparities, occupational disparities, family responsibilities, tax knowledge and financial literacy, legal and regulatory factors, risk aversion, enforcement and penalties, social and cultural norms, and access to resources. As Formanova et al (2021) could not find a gender effect on the level of tax literacy, which does not align with Fallan's (1999) conclusion that reportedly identified a higher level of tax literacy among males, the mix result needs additional testing country-specific.…”

“…Gender differences are driven by various mechanisms, including income disparities, occupational disparities, family responsibilities, tax knowledge and financial literacy, legal and regulatory factors, risk aversion, enforcement and penalties, social and cultural norms, and access to resources (Coelho et al 2022). Fallan (1999) identified a higher level of tax literacy among males, while Formanova et al (2021) could not find a gender effect on the level of tax literacy. The results are mixed and country-specific.…”