Subgroup discovery in structural equation models

Structural equation modeling is one of the most popular statistical frameworks in the social and behavioral sciences. Often, detection of groups with distinct sets of parameters in structural equation models (SEM) are of key importance for applied researchers, for example, when investigating differential item functioning for a mental ability test or examining children with exceptional educational trajectories. In the present article, we present a new approach combining subgroup discovery-a well-established toolkit of supervised learning algorithms and techniques from the field of computer science-with structural equation models termed SubgroupSEM. We provide an overview and comparison of three approaches to modeling and detecting heterogeneous groups in structural equation models, namely, finite mixture models, SEM trees, and SubgroupSEM. We provide a step-by-step guide to applying subgroup discovery techniques for structural equation models, followed by a detailed and illustrated presentation of pruning strategies and four subgroup discovery algorithms. Finally, the SubgroupSEM approach will be illustrated on two real data examples, examining measurement invariance of a mental ability test and investigating interesting subgroups for the mediated relationship between predictors of educational outcomes and the trajectories of math competencies in 5th grade children. The illustrative examples are accompanied by examples of the R package subgroupsem, which is a viable implementation of our approach for applied researchers. (PsycInfo Database Record (c) 2024 APA, all rights reserved).