Title: FedCRL: Personalized Federated Learning with Contrastive Shared Representations for Label Heterogeneity in Non-IID Data

Abstract: To deal with heterogeneity resulting from label distribution skew and data scarcity in distributed machine learning scenarios, this paper proposes a novel Personalized Federated Learning (PFL) algorithm, named Federated Contrastive Representation Learning (FedCRL). FedCRL introduces contrastive representation learning (CRL) on shared representations to facilitate knowledge acquisition of clients. Specifically, both local model parameters and averaged values of local representations are considered as shareable information to the server, both of which are then aggregated globally. CRL is applied between local representations and global representations to regularize personalized training by drawing similar representations closer and separating dissimilar ones, thereby enhancing local models with external knowledge and avoiding being harmed by label distribution skew. Additionally, FedCRL adopts local aggregation between each local model and the global model to tackle data scarcity. A loss-wise weighting mechanism is introduced to guide the local aggregation using each local model's contrastive loss to coordinate the global model involvement in each client, thus helping clients with scarce data. Our simulations demonstrate FedCRL's effectiveness in mitigating label heterogeneity by achieving accuracy improvements over existing methods on datasets with varying degrees of label heterogeneity.