Comments about the use of PLS path modeling in building a Job Quality Composite Indicator

A composite indicator is formed when elementary indicators are compiled into a single index, on the basis of an underlying model of the multidimensional concept that is being measured. The PLS path modeling allows the estimation of composite indicators and the measurement model could be expressed both as formative and re-ective. In this paper we construct a composite indicator of job quality using the PLS path modeling approach and compare results obtained by the formative and the re-ective measurement models of the general concept. We observe that the two approaches can give different results. Consequently, we give some suggestions in order to estimate stable and reliable models.

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