Global Validity of Assessments: Location and Currency Effects

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Quantitative Psychology (IMPS 2023)

Part of the book series: Springer Proceedings in Mathematics & Statistics ((PROMS,volume 452))

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Abstract

As assessments are used in an increasingly multicultural and connected world, there is a growing need to verify that they are equally valid across different populations. More specifically, when using hiring assessments to select people for jobs, it is important to corroborate that direct comparisons of individuals from different populations are valid, leading to fair and accurate hires. Populations differ in many interesting ways, but in this chapter, we examined how cultural group differences affect assessment behavior. Thus, we set out to disentangle the effects of location and currency, as elements of cultural behavior, on constructs used in hiring assessments: fairness, altruism, and decision-making speed. These constructs are measured in our gamified implementation of the Trust Game (Berg et al. (Games Econ Behav 10:122–142, 1995)) and Dictator Game (Savin and Sefton (Games Econ Behav 6:347–369, 1994)). We had data from job candidates in many world regions, who responded in various languages and game money currencies. Using this, we tested the factorial invariance of the measures from the two games. We compared large groups across different regions (controlling for language and currency), namely the United States and China, and across different currencies (controlling for language and region), specifically euros and reales. While the general factor structure held across all groups, we found differences in the observed variables, which varied by group. The findings highlight the importance of considering cultural influences when interpreting assessment results and underscore the significance of measurement invariance in promoting fairness and accuracy in hiring processes.

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Notes

  1. 1.

    To avoid capitalization on chance in model selection, apart from their application to the measurement invariance test samples, all of the several models under consideration were compared for fit on three non-overlap** samples, each comprising \(N=34{,}997\) or \(N=34{,}998\) English language response patterns from the United States. Based primarily on RMSEA as a selection criterion, the same best model emerged each time. RMSEA was chosen as the focus because, among the fit indices considered, its value was least satisfactory. We acknowledge the possibility that other, untested models may fit our data.

  2. 2.

    Actual pymetrics product factor model scores are produced as Thomson–Thurstone estimates (Thurstone, 1935) with missing data handled as described in Thissen and Thissen-Roe (2020). The model in use includes more constructs and observations than the one explored in this chapter.

  3. 3.

    In our studies the choice of reference and focal groups is completely arbitrary.

  4. 4.

    Testing the correlation constraint, as opposed to the covariance constraint, in a model with non-standardized observations was accomplished by simultaneously fitting both the factor model as described and a linear transformation of that model into standardized form; this can be accomplished using lavaan’s regression syntax with many parameters constrained.

  5. 5.

    We did not attempt to evaluate strict invariance, wherein unique variances are constrained.

  6. 6.

    In data for a similar study (Li et al., this volume), we also found that around 10% of Spanish speakers in six different countries take this money back.

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Acknowledgements

We would like to extend a big thank you to Dave Thissen. Furthermore, we would like to thank Simon Moon and Hao Wu, as well as everyone at IMPS 2023. Finally, we want to thank the leadership team at Harver, especially Ben Porr, for supporting our research.

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Correspondence to Ambar Kleinbort .

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Kleinbort, A., Li, A., Szary, J., Thissen-Roe, A. (2024). Global Validity of Assessments: Location and Currency Effects. In: Hwang, H., Wu, H., Sweet, T. (eds) Quantitative Psychology. IMPS 2023. Springer Proceedings in Mathematics & Statistics, vol 452. Springer, Cham. https://doi.org/10.1007/978-3-031-55548-0_31

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