Guo and Fraser's Propensity Score Anlaysis (Sage 2010). Also STATA's reference manuals have good practical advice and provide references in the literature.

Thank You all

Myoung-Jae Lee, (2005). Micro-econometrics for policy, program and treatment effect.Oxford University Press. I got some insights missing during the PhD study from this book. I think it is good for policy evaluation papers and report.

This paper might be helpful as a starting point to get involved with propensity score matching:

"Alternative Approaches to Evaluation in Empirical Microeconomics", by Richard Blundell and Monica Costa Dias (2009), published in the Journal of Human Resources.

Stata 13 also has new rich material on propensity score matching and treatment effects.

Some alternatives to the PSM (implemented by the Stata command "psmatch2")approach can be considered as well. All of which guarantee the satisfication of (covariates) balancing conditions.

1. Entropy Balancing:http://www.stanford.edu/~jhain//software.htm#ebal

2. Covariate Balancing Propensity Score: http://imai.princeton.edu/research/CBPS.html

and

3. Coarsened Exact Matching: http://gking.harvard.edu/cem

as well.

In my experience, PSM do not necessarily satisfy the balancing conditions.

Thank you all

I posted this on another similar thread, but the youtube channel "Econometrics Academy" has a few good videos on PSM and PSM in Stata:

http://www.youtube.com/watch?v=-0HVGe0LKLo

http://www.youtube.com/watch?v=VYUjfFWPENM

Definitely worth a watch