Hello,

I want to use an IV strategy to estimate the effect of an electrification policy on female labour supply. I have data on the policy that indicates how many new households were connected to the grid in each year in each municipality for a total span of time of ten years (2000 to 2010).
I also have census data for two years (2000 and 2010) that contain information on whether a woman is employed or not.
My dependent variable is the change in the rate of employed women in each municipality.
My first question is: What is the correct way to code my dependent variable so that I can account for the change in female labour supply rates between 2000 and 2010?

My second question is: how should I code my electrification variable so that it takes into account the intensity of electrification each municipality experienced. (I cannot make the treatment variable a dummy, since almost all municipalities have received connections through this policy and limiting the treatment variable to a dummy reduces my sample size too much > the control group then would be too small).

Code:
* Example generated by -dataex-. To install: ssc install dataex
clear
input long zipcode byte LPT2003 int(LPT2004 LPT2005 LPT2006 LPT2007 LPT2008 LPT2009 LPT2010 ano) float(LPT_yr LPTchange fem_employment10 fem_employment00)
3156700 0  0  44 427   1   1  12 172 2000 5   .022265904 0 0
2918001 0  0 107 433 445 271 509 325 2000 5    .05561173 0 0
2414605 0  1  49  63 116  80  41   1 2000 6    .13305534 0 0
3204807 0 28  85  51  24 106  12  16 2010 6     .1024825 0 0
2933257 0  0   0   0   1   2  82  14 2010 3    .05316864 0 0
2927408 0  0   0   0   0   0   1   0 2000 1 1.514603e-06 0 0
4211504 0  3   3   3   2   0   3   3 2000 6    .00604337 0 0
4128658 0  0   0  38   0   0  32  17 2000 4    .08430233 0 0
5300108 0  0   0   0   0   0   0   0 2000 .            0 0 0
2304236 0 22  96  28  21  44  21  72 2000 6     .0810883 0 0
end
I feel like I need to get my variables coded correctly before I can run any ivregs.

Thanks in advance for help on where I could read up on these issues.