Analysis Method of Structural Equation Modeling

Abstract

The goal of this article is to define a set of factors which most strongly influence a probability of finding (opening) self-employment by graduates of high schools of the United States of America. Different methods for reducing the number of independent variables are reviewed and compared. First, it is the correlation analysis. This method was used for the assessment of these factors’ influence on self-employment of graduates of high schools of the United States of America. Secondly, it is the classical factor analysis, and finally it is the Confirmatory Factor Analysis with application of Structural Equations. These methods were used to decrease the quantity of the variables influencing self-employment. Confirmatory Factor Analysis with application of Structural Equations was used for the confirmation of the received results. As the data base the information of the National Science Foundation of the United States of America was used. Moreover in this article the factors which have the most significant influence on self-employment of American graduates are described.