Measurement bias and error correction in a two-stage estimation for multilevel IRT models

Among current state-of-the-art estimation methods for multilevel IRT models, the two-stage divide-and-conquer strategy has practical advantages, such as clearer definition of factors, convenience for secondary data analysis, convenience for model calibration and fit evaluation, and avoidance of improper solutions. However, various studies have shown that, under the two-stage framework, ignoring measurement error in the dependent variable in stage II leads to incorrect statistical inferences. To this end, we proposed a novel method to correct both measurement bias and measurement error of latent trait estimates from stage I in the stage II estimation. In this paper, the HO-IRT model is considered as the measurement model, and a linear mixed effects model on overall (i.e., higher-order) abilities is considered as the structural model. The performance of the proposed correction method is illustrated and compared via a simulation study and a real data example using the National Educational Longitudinal Survey data (NELS 88). Results indicate that structural parameters can be recovered better after correcting measurement biases and errors.