A Cautionary Note Regarding Multilevel Factor Score Estimates from Lavaan

Abstract

To compute factor score estimates, lavaan version 0.6–12 offers the function lavPredict( ) that can not only be applied in single-level modeling but also in multilevel modeling, where characteristics of higher-level units such as working environments or team leaders are often assessed by ratings of employees. Surprisingly, the function provides results that deviate from the expected ones. Specifically, whereas the function yields correct EAP estimates of higher-level factors, the ML estimates are counterintuitive and possibly incorrect. Moreover, the function does not provide the expected standard errors. I illustrate these issues using an example from organizational research where team leaders are evaluated by their employees, and I discuss these issues from a measurement perspective.