Multilevel Structural Equation Modeling for Cross-National Comparative Research

Abstract

This contribution focuses on a model that is gaining currency in cross-national research, namely multilevel structural equation modelling (MSEM). Similarly to standard multilevel modelling (MLM), this model distinguishes between various levels of analysis (e. g., individuals nested within countries) and, in doing so, takes the hierarchical structure of cross-national data into account. However, MSEM incorporates a latent-variable approach into the multilevel framework, making it possible to assess the measurement quality of latent constructs. As such, MSEM is a synthesis of structural equation modeling (SEM) and MLM that combines the best of both worlds. The MSEM approach makes it possible to model multilevel mediations and group-level outcomes, and therefore provides a more complete representation of Coleman’s bathtub model. This contribution presents the statistical and conceptual background of MSEM in a formal but accessible manner. The paper discusses applications of MSEM that are particularly useful for cross-national comparative research (CNCR), namely two-level confirmatory factor analysis (CFA), multilevel mediation models, and models for group-level outcomes. A practical step-by-step strategy on how MSEM can be used for applied research is provided and illustrated by means of a didactical example.