General Procedure
1.Run logistic regression:
- Dependent variable: Y = 1, if participate; Y = 0, otherwise.
- Choose appropriate conditioning (instrumental) variables.
- Obtain propensity score: predicted probability (p) or log.
2.Match each participant to one or more nonparticipants on propensity score:
- Nearest neighbor matching
- Caliper matching
- Mahalanobis metric matching in conjunction with PSM
- Stratification matching
- Difference-in-differences matching (kernel and local linear weights)
3.Multivariate analysis based on new sample
- Use analyses appropriate for non-independent matched samples
Read more about this topic: Propensity Score Matching
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