I am running a difference in difference and I was wondering what should I code in order to do a DID on a matched sample
I have 1000 observation recorded for 3 years, 2 pre-treatment and 1 post-treatment.
I am focusing on just the first 2 years for now.
I coded:
Code:
probit export L1.age L1.graduates L1.industry L1.prod if year==2015 predict pscore, pr
now I run the DID using fixed effects
Code:
xtreg prod treatgroup##i.year capital_per_worker graduates lprod if screened_sample==1 & year==2014 | year==2015, fe
Coming to the actual matching issue: I am using change_prod that stands for the change in production between 2014 and 2015 with lagged covariates from 2014. Should I use a similar change variable for time variant covariates as well? is the following code doing DID matching?
Code:
teffects nnmatch (change_prod lagged_age lagged_capital lagged_graduates industry) (treatgroup) if year==2015, ematch(industry lagged_age) biasadj(lagged_capital lagged_graduates) atet nneighbor(1) vce(iid)
meanwhile if I code
Code:
teffects nnmatch (change_prod lagged_age lagged_capital lagged_graduates industry) ( treatgroup ), ematch (industry lagged_age) biasadj (lagged_capital lagged_graduates) atet nneighbor (1) vce (iid)
I am quite lost, thank you for your attention.
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