Dear Statalisters! I'm pretty new to Statalist and found a lot of posts regarding DID and PSM, but nothing that would fit my specific setting. So I apologize if the topic already exists.

I have a repeated cross-sectional dataset for Chile from 1990-2017 (Household surveys that were conducted every two to three years). I merged the surveys to be able to work with the data.
I want to investigate how the labor supply of women evolved after the provision of free childcare in 2006 for a certain subgroup of the population.

Eligibility for childcare is dependent on the following:
-mother is in the labor force (working, looking for a job or studying)
-her child is below the age of 5
-she is part of the lower 60% of the income distribution.

Treatment group: women who are in the labor force (working, looking for a job or studying), with the youngest child (must be <5) in childcare

Control group: Women who are in the labor force (working, looking for a job or studying) with children bellow 5 but who do not send them to childcare.

Control variables: age, education, education_partner, number of children, i.year, i.region

I have two outcome variables: hours worked weekly and a binary variable that answers whether the women worked last week or not (1,0).
Now I would like to use DID in order to measure the treatment effect of the intervention. Since it is not longitudinal data, I have some trouble finding the right specification. I ran DID for hours worked but it gives me insignificant results.

command: reg hrs_work treat time treat##time age educ male_educ nr_child i.year i.r

Do you see what I am missing?
My thought was that propensity score matching could help. But I would need to pscore by year which is not possible as far as I know?

Command:
global treatment treat
global ylist hrs_work
global xlist age educ male_educ nr_child

pscore $treatment $xlist, pscore(myscore) blockid(myblock) comsup

this does not take into account my time dimension. I am a bit lost.
So, to sum it up:

1. Question: How do I best proceed with my type of data for the continuous outcome variable of hours worked?
2. How can I combine PSM and DID that controls for the years and the fact that it is not panel data?
3. How do I proceed in the case of the binary variable? Probit/DID?


Thank you for your suggestions and time.
Kind Regards