Research paper, Econometrics, Empirical analysis

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NaziyaTurarova
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How to apply propensity score matching to data from multiple years

My research topic is: The impact of remittances on household welfare in Kyrgyzstan. I have two panel datasets for the years 2013 and 2016, (the data on migration and remittance receiving is included). The welfare of families is measured through consumer and productive asset indices.
I face the problem of choosing an appropriate method for empirical analysis. According to my adviser, the best solution is propensity score matching (PSM). Moreover, he suggested to consider more than one year to see a dynamics in how much families are better off from receiving remittances or vice a versa.
However, according to what I have already read about the PSM, most researches apply it only to one year, not two or more. I am confused how to use them for the purpose of my research and this specific method of analysis.
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rhysjohnwilliams
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I am not 100% sure about this but wouldn'tthe use of PSM here be to compare the two samples. Obviously the respondents in your two different years are different but they will have certain characteristics which makes them comparable. By using PSM you can link two respondents in different years and then use that in a combined dataset to do your analysis?

Best,
Rhys
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