combining Diff-in-diff and matching

[Dija El]

Hi Statalisters,

I am trying to combine PSM with the DID. What should I do after getting information from the -psmatch2- output in order to proceed to the next step (running the DID)?

gen treat1= treat==1 & yeardummy==1

egen treat_20=max(treat1), by(id)

keep if yeardummy==0

psmatch2 treat_20 urban age i.marital i.educationfemme, common logit

pstest age i.marital i.educationfemme urban, t(treat_20) graph both

what should I do after this to implement the DID?

Thank you.