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Causal Latent Class Analysis with Distal Outcomes

A Modified Three-Step Method Using Inverse Propensity Weighting

Bibliographic Data

ID19290824
AuthorsTrà T Lê (0000-0002-7700-8946, Tilburg University), Felix J Clouth (0000-0002-8359-9228, Tilburg University, corresponding author), Jeroen K Vermunt (0000-0001-9053-9330, Tilburg University)
Year2025
Volume60
Issue1
Pages30-60
Publication date2025-01-02
Open AccessYes
TypeARTICLE
VenueMultivariate Behavioral Research (JOURNAL)
Journal identifiersISSN: 0027-3171 • E-ISSN: 1532-7906
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00273171.2024.2367485
PMID39034808
OpenAlexW4400894042
LanguageEN
References cited29

Bias-adjusted three-step latent class (LC) analysis is a popular technique for estimating the relationship between LC membership and distal outcomes. Since it is impossible to randomize LC membership, causal inference techniques are needed to estimate causal effects leveraging observational data. This paper proposes two novel strategies that make use of propensity scores to estimate the causal effect of LC membership on a distal outcome variable. Both strategies modify the bias-adjusted three-step approach by using propensity scores in the last step to control for confounding. The first strategy utilizes inverse propensity weighting (IPW), whereas the second strategy includes the propensity scores as control variables. Classification errors are accounted for using the BCH or ML corrections. We evaluate the performance of these methods in a simulation study by comparing it with three existing approaches that also use propensity scores in a stepwise LC analysis. Both of our newly proposed methods return essentially unbiased parameter estimates outperforming previously proposed methods. However, for smaller sample sizes our IPW based approach shows large variability in the estimates and can be prone to non-convergence. Furthermore, the use of these newly proposed methods is illustrated using data from the LISS panel

Causal inference · Confounding · Econometrics · Inference · Inverse probability weighting · Latent variable · Observational study · Propensity score matching · Statistics · Weighting · Advanced Causal Inference Techniques · Artificial Intelligence · Computer Science · Mathematics · Medicine · Statistical Methods and Bayesian Inference · Statistical Methods and Inference

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