Applied Structural Equation Modeling for Cross-Cultural Comparison

In this chapter, we focus on the use of Structural Equation Modeling (SEM) to compare path models across two or more cultural groups. SEM can be used to test the goodness of fit of a causal model, as well as to test equivalence of causal relationships among variables of interest across various cultural groups. We will demonstrate SEM through the use of Stata for these purposes. We begin with a rationale for path mode analysis, move on to provide context for the construction of theories in path models using SEM, and provide examples of SEM models for various cultural groups for comparison. We provide examples of Stata commands for examining differences in direct and indirect effects along with goodness of fit statistics across various cultural groups using SEM.