I am currently working on mediation analysis and effects decomposition. Since one of my main variable is a latent variable and I have different indirect paths, I just opted for structural-equation model. However, just for a robustness check, I would like to compute the mediation also with a standard Ols approach and then thinking to use the Sobel test for checking the significance.
Therefore, the idea is the following:
Code:
reg log_income X P // where X is a matrix of individual characteristics (mostly personality traits) and P is father's social class reg log_income X P E // where E is the mediating variable i.e. education level of the individual
Thanks for your help
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