I am in a situation in which I want to investigate whether test items of a questionnaire appear to have DIF.
The items are polytomous and ranges from 1 to 5, with 5 being the most positive answer. I'm a rookie in the area of psychometrics, but I've tried to read the literature about the various methods of how to detect DIF. Based on what I've read, I decided to use the approach outlined below:
1) Using all items of the questionnaire, I estimate the Graded Response Model and obtained estimates of the latent trait parameter, $\hat{\theta}$, for all individuals.
2) For each item, run three ordered logistic regressions. The first model includes only the trait estimate as covariate, the second model includes also a group-dummy, and finally the third model also features a interaction between the trait estimate and the group-dummy.
3) An item is considered to show uniform-DIF if the LR-test between model 1 and 2 is significant; nonuniform-DIF if the LR-test between model 2 and 3 is significant; and overall-DIF if model 3 significantly outperforms model 1 in terms of log-likelihood.
Basically, what I would like to know, is whether this approach is valid? Does it make any sense?