New study: Gen Z are happy to pay their taxes

The welfare state has strong support among young people, research shows.

“Many of today's young people have high demands. They want a good balance between work and leisure, and they want to have control over their own lives. But at the same time, they show strong support for the welfare state,” says Guro Ødegård.

(Photo: Colourbox)

Silje Pileberg Silje Pileberg Silje Pileberg Freelance JOURNALIST

Presented by: Presented by: Presented by: Oslo Metropolitan University

Published 18 September 2025 - 00:01

Generation Z – those born between the late 1990s and early 2010s – has been criticised for being hard to manage and having poor work ethic, according to a Confederation of Norwegian Enterprise (NHO) report from January 2025.

In response to these concerns, a team of researchers set out to investigate whether there is reason to worry about the future of the welfare state.

“Generation Z will have to both finance the welfare system and meet the significant demand for labour in the coming years,” says Guro Ødegård, researcher and director at OsloMet's Welfare Research Institute NOVA.

Whether they succeed, in a time of an ageing population and declining birth rates, remains to be seen.

“However, our findings suggest that the welfare state is resting on solid ground,” she says.

Annonse

A generation with high expectations

Together with colleagues Tale Hellevik and Anne Skevik Grødem, Ødegård analysed data from the survey Norwegian Monitor, in addition to reviewing research on the welfare state, youth, and working life. The findings were presented at a public event in Arendal in August 2025.

“Every generation is shaped by the time they grow up in. Generation Z is the first fully digital generation. They were essentially born with the internet in their pockets,” says Ødegård.

This digital upbringing has influenced them in many ways, including their expectations for a flexible working life.

“Today’s young people prioritise a healthy balance between work and leisure. They also value leadership that focuses on the individual and are more drawn to independence than older generations,” she explains.

Ødegård points to a 2013 study by Sean Lyons and Lisa Kuron that found exactly this – findings Ødegård believes remain relevant today.

Solidarity and willingness to pay taxes

Despite their desire for flexibility, Gen Z strongly support the welfare state. According to the researchers, young people display a significant sense of solidarity with older generations.

“A majority of young people believe it's a key political responsibility to strengthen elderly care. In fact, they show greater solidarity with older people than older people do with families with children,” says Ødegård.

The Norwegian Monitor survey also asked respondents whether they believed high taxes were necessary to sustain essential public services.

“We found that Generation Z is at least as willing to pay taxes as older generations. Since the turn of the millennium, tax willingness has increased the most among the youngest age groups,” she says.

Rising disability rates among young people

But Ødegård also notes some worrying trends. For instance, data from the Norwegian Labour and Welfare Administration (NAV) shows that the proportion of young people receiving disability benefits has increased over the past decade, particularly among those aged 25–29.

“Not everyone is able to participate in working life. Among young people on disability benefits today, nearly seven out of ten have mental health disorders or behavioural issues as their primary diagnosis,” she says.

Annonse

The reasons behind this trend are not yet fully understood. But Gen Z is also a generation marked by worry. In 2021, one in four young people reported frequent concerns about the future, according to analyses by Ødegård and her colleagues.

Smartphones and troubled times

“Future-related worries have increased sharply among young people over the past decade, while this is not the case among those over 40. This is a global phenomenon: Young people have become more anxious since 2010,” says Ødegård.

She references social psychologist Jonathan Haidt, who attributes much of this anxiety to the digitalisation of childhood.

According to Haidt, it's not smartphones or social media in themselves that are the issue, but functions such as ‘like,’ ‘share,’ and ‘retweet’ that were introduced in 2010 alongside the front-facing camera on phones.

“The smartphone may have played a role in this, but we must also acknowledge the turbulent times young people are growing up in, marked by political instability, multiple wars, an escalating climate crisis, a global pandemic, and economic uncertainty. All of these factors may contribute to a sense of uneasiness surrounding adulthood and its responsibilities,” the researcher says.

Adapting the workplace for Gen Z

In the workplace, Ødegård argues there is little to gain from trying to make today’s youth conform to hierarchical power structures. They have been educated in a school system that values participation, critical thinking, and taking responsibility for one’s own learning.

“I would turn the mirror around and highlight how today’s young people have a unique ability to adapt to and make use of digital tools. This is exactly the kind of skill the future labour market needs. Employers who manage to adjust to their expectations will have a competitive edge in attracting new talent. The key is creating workplaces where individuals are recognised and can fully utilise their skills,” she says.

That said, Ødegård suggests that young people might also need encouragement to pursue careers that are critical to the welfare state’s sustainability.

“With an ageing population, Norwegian society urgently needs workers who can help sustain the welfare system. Not everyone can become an influencer,” she says.

Reference:

View the fact sheet on the findings in Norwegian here.

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Read the Norwegian version of this article on forskning.no