title: The use of cognitive ability measures as explanatory variables in regression analysis.
abstract: Cognitive ability measures are often taken as explanatory variables in regression analysis, e.g., as a factor affecting a market outcome such as an individual's wage, or a decision such as an individual's education acquisition. Cognitive ability is a latent construct; its true value is unobserved. Nonetheless, researchers often assume that atest score, constructed via standard psychometric practice from individuals' responses to test items, can be safely used in regression analysis. We examine problems that can arise, and suggest that an alternative approach, a "mixed effects structural equations" (MESE) model, may be more appropriate in many circumstances.
authors.affiliation: Dept. of Statistics, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA 15213.
authors.forename: Brian
authors.initials: B
authors.lastname: Junker
authors.affiliation: Dept. Mathematics & Statistics, Swarthmore College, 500 College Avenue, Swarthmore, PA, 19086.
authors.forename: Lynne Steuerle
authors.initials: LS
authors.lastname: Schofield
authors.affiliation: Heinz College, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA 15213.
authors.forename: Lowell J
authors.initials: LJ
authors.lastname: Taylor
keywords: Item response theory; Labor economics; Structural equations modeling