structural equation modeling
(SEM) any of a broad range of multivariate analysis methods, including factor analysis and path analysis, that examine variances and covariances in order to find interrelationships among latent variables. For example, assume a researcher hypothesizes that job satisfaction leads to happiness. Both are latent variables that are not directly observable but are defined in terms of other measurable variables, such as judgments of job performance from supervisors and peers; self-reports about attitudes toward pay, supervision, type of work, and other job characteristics; results from psychological tests; and so forth. The researcher could use the measurable data to generate an equation representing the strength and nature of the links among the latent variables.