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A latent variable modeling procedure for studying factorial invariance and differential item functioning for multi-component measuring instruments with nominal items is discussed. The method is based on a multiple testing approach utilizing the false discovery rate concept and likelihood ratio tests. The procedure complements the Revuelta, Franco-Martinez, and Ximenez approach to factorial invariance examination, and permits localization of individual invariance violations. The outlined method does not require the selection of a reference observed variable and is illustrated with empirical data.
Tenko Raykov (Mon,) studied this question.