Multilevel SEM Strategies for Evaluating Mediation in Three-Level Data

Strategies for modeling mediation effects in multilevel data have proliferated over the past decade, keeping pace with the demands of applied research. Approaches for testing mediation hypotheses with 2-level clustered data were first proposed using multilevel modeling (MLM) and subsequently using multilevel structural equation modeling (MSEM) to overcome several limitations of MLM. Because 3-level clustered data are becoming increasingly common, it is necessary to develop methods to assess mediation in such data. Whereas MLM easily accommodates 3-level data, MSEM does not. However, it is possible to specify and estimate some 3-level mediation models using both single- and multilevel SEM. Three new alternative approaches are proposed for fitting 3-level mediation models using single- and multilevel SEM, and each method is demonstrated with simulated data. Discussion focuses on the advantages and disadvantages of these approaches as well as directions for future research.