Studying Latent Criterion Validity for Complex Structure Measuring Instruments Using Latent Variable Modeling

Validity coefficients for multicomponent measuring instruments are known to be affected by measurement error that attenuates them, affects associated standard errors, and influences results of statistical tests with respect to population parameter values. To account for measurement error, a latent variable modeling approach is discussed that allows point and interval estimation of the relationship of an underlying latent factor to a criterion variable in a setting that is more general than the commonly considered homogeneous psychometric test case. The method is particularly helpful in validity studies for scales with a second-order factorial structure, by allowing evaluation of the relationship between the second-order factor and a criterion variable. The procedure is similarly useful in studies of discriminant, convergent, concurrent, and predictive validity of measuring instruments with complex latent structure, and is readily applicable when measuring interrelated traits that share a common variance source. The outlined approach is illustrated using data from an authoritarianism study.